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^ J^ O T S 
 
 FOR THE 
 
 ELECTOR 
 
 A Record of tbe GonsevatiYe Adiinistration 
 
 1878-1882. 
 
 CLAIMS OF THE GOVERNMENT 
 
 FOR THE 
 
 SUPPORT OF THE PEOPLE 
 
i;. 
 
 
 --J?l ,, fr>^ 
 
 
 I 
 
' 
 
 FACTS FOR THE ELECTORS. 
 
 31EVIEW OP CONSERVATIVE ADMIinSTRATIOH. 
 
 «V^! 
 
 THE PUBLIC EXPENDITURE. 
 
 The approach of the general elections 
 has given rise to the usual amount of 
 campaign literature. The Liberals, dur- 
 ing the last session of Parliament, issued 
 some three four sheets, which were 
 distributed through the post office, at the 
 public expense, to all parts of the Domin- 
 ion. These sheets profess to be " Records 
 of Tory Administration since 1878.'' They 
 profess to deal with the rl^id increase of 
 the debt and expenditure, with " contract 
 swindles great and small," with " malad- 
 ministration and disregard of public in- 
 terests," and with various subjects con- 
 nected with the National Policy. We pro- 
 pose to review the more prominent 
 i^tures of these sheets, and we shall 
 leave it to the electors to say how far the 
 statements made in them are justified by 
 the facts. 
 
 (.1 
 
 DEBT AND EXPENDITURE. 
 
 The first subject referred to is the pub- 
 lic debt, and statements are given to 
 show that the net debt increased from 
 «75,728,641 in 1867 to $99,848,461 in 1873. 
 Prom thence to 1878 to $140,362,069 
 and in 1881 to $155,395,780; and it is 
 pretended that the increase during the 
 Mackenzie Administration was due en- 
 tirely to obligations which had been 
 inherited by them, and which had been 
 incurred by the Conservatives when in 
 office. Let us look tffethe facts connected 
 with the public debt. The increase from 
 1867 to 1873, a period of six years of 
 Conservative, rule was $24,119,820, an 
 
 average of $4,01 9,970 5 from 1873 to 1878, 
 five years of Liberal rule, the increase 
 was $40,513,608, an average of $8,102,721 ; 
 and during the last three years of Conser- 
 vative rule the increase was $15,033,711, 
 an average annual increase of $5,011,237. 
 Of the increase during the first period and 
 a portion of the second nearly $20,000,000 
 was for transfer of debts from provinces to 
 Dominion, or was caused by debts allow- 
 ed to new provinces brought into the 
 Dominion. No less than $15,525,279 of 
 the increase in the debt before 1873 was 
 of this class, nearly the whole of it being 
 caused by the assumption of the Domin- 
 ion Government in the session of 
 1873 of the debts of Ontario and 
 Qnebec, and the addition of certain 
 amounts to the debts of other provinces 
 to compensate them for this ; so that the 
 actual increase of the debt as measured 
 by the burden upon the people, between 
 1867 and 1873 was $8,594,541, or an aver- 
 age during the six years of Conservative 
 rule of $1,432,423. Of the increase • dur- 
 ing Mr. Mackenzie's regime, $4,927,060 
 was of the class referred to being the 
 debts of Prince Edward Island and other 
 charges of a similar kind, making the ac- 
 tual increase during the five years of Mr. 
 Mackenzie's rule $35,585,548, or an aver- 
 age annual increase of $7,117,109. Here 
 are the average annual increases of the 
 debt down to 1881:— 
 
 Six years of Conservative rule $4,019,970 
 
 Or, deducting transfersof debt $1,482,423 
 
 Five years of Li berftl rule 8,102,721 
 
 Or .deducting trauslersof debt 7,117,109 
 
 ibree years of Conservative 
 rule 6,011,237 
 
 It is said that the increase in the debt 
 
under Mr. A^aokenzie's regims was due tb 
 the obligations joherited fiom his pre- 
 decessors. ''This statement is incorrect. 
 The Intercolonial Railway, which caused 
 a considerable increvse of the debt, was 
 not a party question. Both parties in 
 arranging the terras of Confederation 
 
 ' agreed to build that railway. Even the 
 selection of the route by the north shore 
 instead of the short route by the valley 
 of St. John was not a party question, as 
 will be seen by the following names of 
 those who voted for that selection. The 
 total vote upon which the Bale de Cha- 
 leurs route was ohoaen, was 114 to 28, and 
 
 ,, among the majority were the following 
 
 'Liberals, twenty-foui in all. 
 
 Anglin, 
 
 'Bechard, 
 ■. Bovirasssa, 
 
 Oartwright, 
 
 CheVal, 
 ' Co^b, , , 
 
 Cbu'bal, '';'. '■■' 
 
 . mm ^''^: " 
 
 • Geotfi-ion; ' ' , 
 'llolton, ' 
 Hutcliison, 
 
 T'. » 1 
 
 Killam, 
 
 'Hacdonald, D. A^ 
 ' PAquet, 
 Pelletier, 
 Pozer, 
 Roy, 
 
 Ross, Walter, 
 "' Ross, (Victoria, N.S.) 
 Smith, A. G., 
 Tremblay, 
 Wood, 
 Joly;:' '" ;, ' 'j' Fortier. 
 
 So far as thie increase of th^ debt caused 
 by the Intercolonial Railway was con- 
 cerned it-was not a party questior^ at all, 
 <ind neither party is responsible at all. 
 Tie» it ia claimed that. the enlargement 
 of the canals was aji obligation inherited 
 by ^U: Mackenzie from his predecessors. 
 As a matter of fact, Mr. Mackenzie was 
 not bound to apend a dgllar upon tjie 
 catiala except for the completion of the 
 contracts let upon the Lachine Canal. 
 The Government of Sir Johp Macdonald 
 • had advertised for tenders for the en- 
 largement of the Welland Canal, and 
 ' tenders had actually been received ; but 
 . Mr. Mackenzie cancelled those tenders, 
 and, on his own responsibility, and be- 
 cause he believed the expenditure was 
 
 a proper one. 
 
 he advertised for new 
 
 tenders, and let the work at some $200, 
 000 or $300,000 more tha^ it had been 
 tendered for before he came into office. 
 The Pacific Railway the Liberals have de- 
 clared frequently since, they were not 
 bound to build unless the finances per- 
 
 tditted it. They have within the last 
 three years placed that view on record in 
 the journals of Partiament, so that if Mr, 
 iVfackenzie thought the country was not> 
 able to build the railway he could just aa 
 well have stopped it in 1874 as when he 
 he desired to stop St in 1881. As a mat- 
 ter of fact the orily contracts of any 
 great importance let by the Conservatives 
 which Mr. Mackenzie was bound to 
 complete, outside of the Intercolonial 
 Railway, were those on the Lachine Canal. 
 All the other expenditures causing this, 
 increase of the debt were made upon bis 
 own responsibility. ^ 
 
 There is, however, another feature 
 which should be looked at. During the six 
 years of Conservative rule m consequence 
 of the good times and careful manage- 
 ment of public affairs, $12,072,780 were 
 spent on capital account in excess 
 of the additions to the debt. Dur- 
 ing the five years of Grit rule, fl,997,- 
 613 wefe added to the public debt 
 more than was expended on capital ac- 
 count. Whiltduring the last three and a 
 half years, of Conservative rule, down t^^ 
 1st January last, $4,522,822 were spent on 
 capital account in excess of the addition 
 to the debt, that is, assuming the year 
 1872 3 as the last year of Conservfttive 
 rule, and the yfea* 1877 8 as the last year 
 of Liberal rule*. But if we take the figures 
 in the Opposition campaign sheets and 
 make the Consfervatives responsible for 
 the year 1873 4 and the Liberails for the 
 year 1878 9, it will be seen the Conserva- 
 tives spent on capital account in excess 
 of the addition to the debt $12,833,009 ; 
 the Liberals added to the debt in excess 
 of expenditure on capital account 
 $4,257,612; while the Conservatives 
 have since spent on. capital ac- 
 count in excess of the additions to the 
 debt the large sum of $7,543,044. 
 Thus, if during the (Jonseravtive Admin- 
 istration the same condition of things. 
 had existed as during the Liberal admin- 
 istration and the same expenditures oa 
 capital account had been made, the debt 
 
 would have been )$20,376,042 more than 
 it is. In the face of these figures one 
 must be astonished at the Opposition 
 challenging an inveitigption into the facts, 
 connected with the, public debt. 
 
 T 
 I 
 
 , ■*• > 
 
 
 -^ 
 
, ■♦• > 
 
 "" ; ' TUE'PtBtlC EXPEJJDITUIIK. 
 
 Tlie , Liberals in dealing with the public 
 expenditure corapai;e the year 1873-4 with 
 the year 1877-8 as if the Iprmer was the 
 last year for which the Conservatives were 
 responsible, and the letter the last year 
 for which the Liberals were responsible. 
 As a matter ot fact, the year 1873-4 the 
 Conservatives were only iii office for 3^ 
 months and in 1878-9 the Liberals .were 
 in office for four months. IS we 
 are to deal with the complete yea^s of 
 «ach administration the proper way is^to 
 take the year 1872-3 and the year 1877-8. 
 The total expenditure lor the former 
 year was $19,174,647 and for the latter 
 year $23,503,158 ; but there ia no doubt 
 that would uot be a fair comparison. The 
 true way is to take the estimat^si subnait- 
 ted by Sir Leonard Tilley in the session 
 of 1873 for the service of 1873-4, for 
 ■which he should be held responsible. 
 The total amount voted for that year, 
 includmg the supplementary estimates, 
 on account Of the consolidated fund 
 was $21,639,660. • Th6 expenditure for 
 that vear was $23,316,316, or an ex- 
 ■cess of expenditure for the year, eight 
 months oi which was controlled by Mr. 
 Mackenzie of $1,676,650. There were, 
 however, some items riot included in the 
 estimates connected with the admission 
 of Prince Edward Island irito the 
 -Confederation which will account 
 for some of this difference ; but 
 in order to make up an apparently 
 
 large expenditure which they could 
 afterwards fix as a basis of comparison, 
 they churged a;:?ain8t consolidated re- 
 venue nearly $900,000, which ought pro- 
 jierly to have been charged to capital 
 account, such as expenditures on 
 the Intercolonial Railway, expendi- 
 tures on the Dawson route, and 
 some $69,000 on account of refund 
 of Customs ; so that under any cir- 
 oumstances, if the Conservative Govern- 
 ment are to be held responsible for 
 1873-4 on a fair making up of the ac- 
 counts, the expenditure was $1,000,000 
 ess than it was put down in the state- 
 pients published by the Liberals. The 
 total expenditure iii 1878-9 was $24.- 
 455,38iy or an increase during the five 
 •years, even taking the figures as they are 
 
 in the public accounts, of $1,139,065. It 
 is, however, a very misleading way of 
 dehling with the expenditure ' to take 
 these bulk sums. The expenditure is 
 divided into three classes so far a« the 
 general heads are concerned. iThe first, 
 charges for debt and subsidies which are 
 practically beyond the control of the Ad- 
 ministration ; the ordinary expenditure 
 which is largely within its control ; and 
 the charges on revenue which may be 
 said also to be largely within its control. 
 Included in the ordinary expenditure are 
 certain items which may be made large 
 or small according to the views of public 
 policy of the Government, and taking a 
 few of these we will see how far the Qov- 
 ernment of Mr. Mackenzie is really en- 
 titled to creditforan economical adminis- 
 tration. Here are a few items upon 
 which reductions Were made : 
 
 1878-4. 
 Immigration and 
 
 quarantine I?>8.572 00 
 
 Militia and defence. . . 97T,m 27 
 
 Public worka 1,828,00108 
 
 LlKhthouse and coast 
 
 service °^'"5, S 
 
 Dominion lands 2e3,163 00 
 
 Dominion forces ^ 
 
 (Manitoba) 209,169 42 
 
 Boundary survey '^''*3 x*? 
 
 Military stores ^^*'tl^ 9i 
 
 Customs refunds W,330 02 ^ 
 
 Total $4,444,868 97 $2,542,876 34 
 
 This makes an apparent reduction in 
 the expenditure in these items, many of 
 which were exceptional in 1873-4, and all 
 of which were of a character that could 
 have been dispensed with almost alto- 
 gether if that had been the policy of the 
 country, of $I,901,992.&3. In the matter 
 of the collection of revenue, although the 
 revenue itself was practically stationary 
 during that time, there was ata in- 
 crease during' Mr. Mackenzie's regime 
 from $4,736,442.28 to $5,561,182.19, 
 an increase of $825,719.91 or an 
 average increase of $155,143.98, whiledur- 
 ing the Conservative regime down to 1881 
 the increase was $121,999.96, or an aver- 
 age increase of of $60,995.48, and that 
 with an enormously increasing revenue 
 in all the great collecting departments. 
 It is complained that the expenditure 
 since this Government has come into 
 power has increased very largely. This is 
 true. With a booming revenxie the Gov- 
 
 1878-9. 
 
 $212,234 05 
 777,698 98 
 
 i,oi3;6»a 10 
 
 447,566 92 
 91,778 29 
 
 1*- t'.';i'... 
 
eminent have been able to make expen- 
 ditures from the consolidated fund for 
 public works and other objects of utility. 
 They have been able to deal generously 
 with those branches of the public service 
 which immediately affect the prosperity 
 of the country. The total expendiiure in 
 1877-8 was $23,503,158; in 1881 it was 
 125,502,554, or an increase in three years 
 of l,y9U,39G. Take, however, a few items 
 of this increase : — 
 Intereitt and charges on public 
 
 debt, increase f 183,604 
 
 Census, increase 127,033 
 
 Public Works, increase 140,17 » 
 
 Indian grauts, increase 383,694 
 
 Post office, increase 151,719 
 
 Public works, collecting revenue 
 
 of, increase 231 ,727 
 
 Total $1,918,848 
 
 So that in these items alone we have 
 within $80,000 of tho entire increase. It 
 is worth while to give a few facta showing 
 in contrast the annual increase during the 
 five years of liberal administration and 
 three years of Conservative rule : — 
 Public Dbbt, interest on sinking 
 fund and charges, five years of 
 Liberal rule, annual increase. . $ 478,207 
 Three years of Conservative. . .. 294,535 
 Post Offio : Five years of Lib- 
 eral rule 131,441 
 
 Three years of Conservative rule . 60,57 3 
 
 And this is in spite of the fact that a large 
 number of new post offices have been 
 opened up throughout iixe Northwest, in- 
 volving a large expenditure for service. 
 Cus«x>nis Department, annual in- 
 crease during five years of Jiiberal 
 
 rule...,., , $29,352 
 
 Annual increase during three years 
 
 of Conservative rule $1,059 
 
 And this in spite of the fact that during 
 the five years Mr. Mackenzie was in office 
 the customs revenue only increased in 
 the aggregate $171,340, while during the 
 three years the Conservatives have been 
 in office it has increased $6,021,208. The 
 cost of the collection of revenue increased 
 under the Liberals $381,130, under the 
 Conservatives $127,343. Under the Li- 
 beral administration the average increase 
 in the cost of collecting the revenue was 
 greater by 168,822 than f/he averaj'.e in- 
 
 crease in the revenue itself. It is onr 
 these details that we have the best 
 grounds for congratulation upon the 
 financial administration of the Conserva- 
 tive Government. 
 
 It is said that the estimates for next 
 year are very heavy, and a charge of ex- 
 travagance is made against the Govern- 
 ment in consequence of that. There ar© 
 undoubtedly increases in the Odtimates^ 
 but they are not ot a character to- 
 justify a charge of extravagance against 
 the Government. Including the sup- 
 plementary estimates brought down 
 during the late session the excess 
 of expenditure according to the esti- 
 mates of 1 882-3, as compared with those 
 of 1878-9, will be $3,624,115, but of this- 
 the following item will show how little of 
 it is duo to extravagance on the part of 
 the Government : — 
 
 Interest on the debt and sinkiDg 
 
 fund $ 915,32T 
 
 Immigration 188,885 
 
 Public works 1,173,382 
 
 Indian grants 419,981 
 
 Mounted Police 88,177 
 
 Collection of revenue. Post Office. 234,477 
 
 Public works 47,72ff- 
 
 Total $ 3,067,95a 
 
 Leaving only about half a million of 
 dollars to be scattered over the other 
 branches of the public service. Of course 
 these estimates are not a fair comparison 
 for the reason that the expenditures do 
 not always reach them. Last year, for- 
 instance, the expenditures were $500,000- 
 less than the estimates submitted to Par- 
 liament for the service of the year. The 
 two items of Mounted Police and Indian 
 Grants are an absolute necessity, and no 
 better proof of this can be afforded than 
 by quoting from the letter of tne special 
 correspondent ot the Toronto Globe to 
 that paper, dated Pincher Creek, North- 
 west Territory, on the 26rd September- 
 last, and published in the Globe on the 
 24th November. In tiiat letier the 
 whole question of the position of the 
 Indians and of the Mounted Police is- 
 dealt with as follows ; — 
 
 '* Though so far the police have been 
 able to make arrests of Indian depreda- 
 tors in the face of overwhelming odds^ 
 
the general impression among the best 
 informed frontiersmen is that this game 
 of blutt" is about playe I out, and that the 
 day when three or four red-coated prairie 
 troopers, through sheer pluck and cool- 
 ness, can overawe a large band of Bloods, 
 Piegans or Blaokfeet, lias now nearly, or 
 quite, passed by, and that in future the 
 greatest caution will have to be exercised 
 in dealing with these lawless, half- 
 starved savages. Even now horse-steal- 
 ing and « cattle-lifting' is goinjj on in 
 various quarters in spite of the vigilance 
 of the handfuls of police stationed at 
 various points throughout this great 
 stretch of country, and settlers and 
 ranchmen are threatening to take 
 the law hito their own hands. Should 
 tliey do so the most frightful results 
 will be sure to follow, and a general up- 
 rising of the Indian tribes might confi- 
 dently be predicted. No matter what 
 this may be, I think the police force 
 should be increased and the Indian Com- 
 missioner slould be invested for this winter 
 at least with absolute authority to grant 
 to the Indians such supplies as may be ne- 
 cessary to keep them from starving to 
 death. It will certainly be cheaper to feed 
 these Indians than to fight them, and 
 should they once set the authority of the 
 Oovernment at defiance, there is no force 
 in this region that could reasonably be ex- 
 pected to enforce that authority in the 
 presence of overwhelming numbers of hos- 
 tile savages," 
 
 The correspondent takes an eminently 
 sensible view of the case when he points 
 out that the question of cost is a second- 
 ary one in dealing with this subject. At 
 all hazard!^ and at almost any cost, the 
 chances of Indian troubles must be pro- 
 vided against, as far as human foresight 
 can accomplish the task. The writer in 
 the Globe a&ys: — 
 
 " It will cost a good deal of money to 
 make the 25,000 Indians that have been 
 driven away here tothe base of the Kocky 
 Mountains, by the progress of settlement, 
 prosperous and law-abiding citizens, but 
 I think the policy now being pursued, 
 that of teaching them to make a living 
 through agriculture and stock-raising a 
 sotmd one, asevery Indian who succeeds 
 in making for himself a competency in 
 
 this way will exert a very powerful influ- 
 ence for good upon others of his own race. 
 As soon as he has a band of cattle or 
 ponies, or a little ranche under crop, he 
 becomes a fri«M<i of law and order and an 
 ally of the white settlers, while his com- 
 parative wealth invests him with excep- 
 tional weight and influence with his 
 own people. Thus it will be seen that 
 every dollar now judiciously spent in en- 
 conraging industrious, thrifty Indiana 
 may, a few years hence, save the expendi- 
 ture of hundreds of dollars in fighting 
 hostle or feeding starving ones^ 
 
 The increase in the Post Ofhce depart- 
 ment is caused by the opening up of new 
 post offices all through the Northwest and 
 in British (Columbia, and increased postal 
 service in other parts of the Dominion. 
 When it is remembered that under the 
 Liberal Administration the cost of the 
 Post Office increased from $1,387,270.48 
 to $1,784,423.88, and that without any 
 specially enlarged service, it will be ad- 
 mitted "that it does not lie in their mouths 
 to complain of the increase in the service 
 as the result of greater accommodation to 
 the public. The increase in the cost of 
 managing the public works is marvellous- 
 ly small when it is remembered that it 
 includes the cost of operating the Inter- 
 colonial Railway. It is impossible, of 
 course, to give any details in connection 
 with the working of the Intercolonial for 
 the year 1882-3, but taking the last year 
 tor which we have details, we find these 
 remarkable facts: In 1878-9 there were 
 714 miles of railway working ; in 1881, 840 
 miles; in 1878-9 the earningd were $1,294,- 
 100; in 1881 they had increased to $1,7 00,- 
 394; in 1878-9 the loss to the country in 
 operating the railway was $717,084; in 
 1 880- 1 there was a gain of $543. The work- 
 ing expenses per train mile were reduced 
 from 95.20 cents to 02.56 cents in 1881. 
 Putting it in another way we find that for 
 the last three years the railway was 
 worked by Mr. Mackenzie there was a 
 loss in the working of $1,655,638, making 
 an average annual loss of $558,875, while 
 under the auspices of the present Minister 
 of Railways, Sir Charles Tupper, the loss 
 upon the road in 1879-80 was only $9T,132, 
 and in 1881 there was an actual profit of 
 $543. Working, however, 126 miles more 
 
8; 
 
 of railway will certainly aooount for the 
 Hinall iuurtmse in the coHt of ooiitM)tiuK 
 tht) revenue i'or piihlio workn. So with 
 every deiuiilment there hiw l>e«n a nv 
 marJiftble illuiitration of the CRrefulnews 
 
 with xHiich the aftiiirBof the country liii(ve,i 
 l)0«n nwuiagnd. Take the «!uatouiH dot- 
 ])»rtxiieint and the following Rtatoraent will 
 nhomr what miii-veliouH huccqu haa at* 
 tertderl the Administration; !i!t , !•> 
 
 MliMOBANDUM OF CUSTOMS DHPARTMKNT EXPENDITURE. 
 
 Year 
 ended 
 June. 
 
 1876. 
 1877. 
 1878. 
 1879. 
 1680, 
 1881. 
 
 Salaries. 
 
 $28,743 49 
 
 27,320 
 
 83 
 
 28,237 
 
 60 
 
 28,229 
 
 12 
 
 30,966 
 
 67 
 
 .30,661 
 
 97 
 
 Con tin gen- 
 ciee. 
 
 ToUl. 
 
 $17,234 07 
 
 15,767 38 
 
 16,372 71 
 
 13,726 61 
 
 6^733 73 
 
 ,6.640 35 
 
 $45,977 66 
 43,088 21 
 44,010 21 
 43,994 73 
 37,700 40 
 36.202 32 
 
 A» compared with ' 
 
 1878. 
 
 LeHg. 
 
 M,622 00 
 
 •I.t ,; ■ 
 
 1,655 48 
 
 6,910 81 
 
 8 407 t»9 
 
 Over. 
 
 ""Do after 
 deducting 
 8tatutary 
 incroaHes. 
 
 Leeii ' 
 
 $1,36; 35 
 
 rtr 1. 
 
 "'-''■iniiv 
 
 "'\"!\'u' ; 
 2,480 48 
 
 8,710 81 
 
 11,307 89 
 
 riTSTOMS OUTSIDE SERVICE. 
 
 Year. 
 
 1876. 
 1877. 
 1878. 
 1879. 
 1880. 
 1881. 
 
 balarics. 
 
 $564,813 74 
 567,745 38 
 671,660 06 
 555,425 73 
 564 9)3 90 
 
 Day Wages. 
 
 $79,466 07 
 74,598 35 
 70,400 04 
 63,117 20 
 67,091 49 
 
 Contingeti- 
 oiet*. 
 
 $53,219 0,'\ 
 46,876 28 
 48,154 22 
 45,365 29 
 46,316 14 
 
 MlHCellantiOUH 
 
 and 
 
 InHpcction. 
 
 ,!.i;r jiT) 
 
 $24,104 29 
 25,307 76 
 29,496 37 
 26,967 34 
 27 044 on 
 
 Board of 
 Customs. 
 
 $17,026 62 
 12.340 78 
 
 Total. 
 
 $721,008 60 
 721,604 96 
 714,627 77 
 719,711 20 
 713,892 37 
 717.704 31 
 
 It will be seen from this that while 
 there has been an enmorous increase in 
 the revenue, the cost of collecting it has 
 actually been reduced, not simply in a 
 percentage but an actual reduction. See 
 the faets, as follows : — 
 
 Customs Rev.iiiuc, 1878 $12,833114 48 
 
 Cubt of collecting, $5. 58 per $100 
 
 Customs Revenue, 1881 . . $18,500,785 97 
 
 Cost of coliecting, $3 37 per $100 
 
 In no respect, perhaps, is the reduction 
 so marked as in the matter of contin- 
 gencies, where the carefulness of the 
 Minister has it fullest pLty. While Mr. 
 Bwpee spent on contingencies in 1876, 
 1877 and 1878 an average each year of. 
 
 t. 
 
 % ! ^ 
 
 T 
 
 + 
 
I 
 
 T 
 
 \ 
 
 9 
 
 • < 
 
 4. 
 
 % I * 
 
 1 
 
 $10,4o8 Mr. fiowpU biutipent an avoraae 
 during I880and LSHIof »t>,187 ; and w)ule 
 ho has been able to add to the Hta^F oi the 
 DepartjU'Mit u board of ciwtoms which has | 
 proved of jjreat assititanoe to hiiu in the 
 collection of reveuuo, he has been able at 
 the sayie tlrae to reduce somewhat the 
 total, oxfjendituro on account of <y'u8tom8. 
 Nothuig '. could niore clearly naark the 
 carefulness with which the Government 
 have administered the atlaira of the coun- 
 try than tljis exhibit. They have been 
 liberal in, exponaitures tendinj^ to tl^ede- 
 velopn^nt of Canada and t^ivy have been 
 careful and economical in all matters 
 vyhere carefulness and economy were of 
 value to the public. Another ilhistration 
 whica may be given to the contrast is tlie 
 administration of the Weights and Moas- 
 iires Department under Air. Mackenzie's 
 administration and under the present 
 liovernment. In a recent debate in Par- 
 liament Mr, Bo well read the names from 
 at. Dfficial statement fcivinp; the dates of 
 their appointment and the datos upon 
 which they commenced work of no less 
 than 97 officers appointed by the late 
 Oovernment in 1875 and who received in 
 the aggregate no less than *52,282..'{2 be- 
 fore they were in a position to do a stroke 
 of work, the standards not having been 
 dupplied to them. These ofHcer.s were 
 distributed In the provinces as follows : — 
 
 Ontiirio $19,P99 44 
 
 Queb<;c 20,048 54 
 
 New Brunswick 6,1 64 65 
 
 Manitoba 770 00 
 
 Prince Edwtnti Island 4H5 34 
 
 British Columbia 74 97 
 
 $52,-<!82 32 
 
 Nothing has occurred in the history of 
 this country so shameless as this. Ont* of 
 these happy mortals, Mr. Gre)uer, who 
 never acted at all, drew his pay i'cr over 
 1,319 days. lie was appointed on the 
 coast of Labrador, where certainly no 
 weights and measures inspector was 
 needed, and received iiis $1,800.89. A 
 Mr. Kerr, Hants, iSova Scotia, drew pay 
 for 897 days, in all $1,^30.44, for which he 
 never did a stroke of work. A Mr. 
 Blanchard, of Restigouche, drew no 
 1*^88 tl^an 1^1,819.39 and never did a stroke 
 ol work J and so on during the whole 97, 
 
 the number of whose days during whioh, 
 they aimpty drt^w their pay and did no-, 
 ing, ran froiq, 200 up to (U)0 and 700. 
 men agam, in onidilion to tliis large ex- 
 penditure, there are at this moment 
 lying in the oollAr% of the eastern l>look 
 of departmental buildings, weights, meas- 
 ures, scales and other artivA^p which aro 
 useless, and whty^, i^ost $.'J7.;W9,40. , It is. 
 true that Mr. boss 1ms charged that a 
 portion of this equipment watt puroba-ied 
 under the former Conservativ** adminis- 
 tration. That »it('.tement, iiowjeverjiis in- 
 accurate. There were Bome samples 
 ])urcha8ed valued at about $7,()(X), but 
 with the exception of that, tiie whole of 
 this largo e.xpenditure for useless i^nple- 
 ments was made by the late adjuinistra- 
 tion of Mr. A^ckon/io. Another offioial 
 statement submitted by Mr. Bovvell shows 
 the expenditure in tliis department a» 
 follows : — ,j. , ■ ... ,.1, 
 
 Year. 
 
 187.'- 
 
 J877-7K 
 IKSO-81 
 
 HO 
 
 H 
 
 5,'j(.o.oo:? 
 
 •c 
 
 09 
 
 "3 
 o 
 
 00 
 
 "3 
 
 H 
 
 * a 
 Ho . 
 
 U BO 
 
 nay 
 
 $I35 30ri 
 ■18!I,628 
 
 I ] '| , » M 'i 
 
 1 
 
 3 0- 
 
 »4 
 
 10 
 
 ■51! 
 
 ISO 
 216 
 
 IS H 
 
 o ^ 
 
 %^ 
 
 8 3-10 
 10 i 
 
 
 2i 
 8J 
 
 The increased number of officers in 
 1881-82 is accounted for as follows : — 
 y^iecially appointed for the sufvery of 
 
 tobacco cultivated in Canada 15 
 
 Counted alno as Inspectors of Weights 
 
 and Mt'asiiTes 3 
 
 Counted also us Inspectors of Gas 1 
 
 Employed ai Inspectors of Petroleum 
 imported into Canada (for the Cus- 
 tcns Department at the principal 
 ptucos), and for the more effectnol 
 inspection of Canadian petroleum 
 
 under the Act of 1880.. 6 
 
 Additional Excisemen required for the 
 survey of distilleries, it having been 
 found necessary to provide addi- 
 tional .'•icurity for the collection of 
 the revenue 6 
 
 Making a total of. . ^ 31 
 
 The employment of the nine imaccount- 
 ed for above became lie'jessary '\\\ conse- 
 
10 
 
 quence of the additional work imposed 
 on the Department in stamping Cana- 
 dian tobacco and in '^TOviding and distri- 
 buting stamps to t) e Customs Depart- 
 ment for imported tooacco. Tliere was a 
 total number of forty appointed, as ne- 
 cessary on account of extm and addi- 
 tional work imposed on the Departr::ont 
 by stamping for the different Custom 
 Bouses. 
 
 It has been complained that there has 
 been an increase of officers in connection 
 with the Excise Department, and an 
 attempt has been made to show that this 
 has been the case in connection with the 
 weights and measures branch. As a mat- 
 ter of fact, however, this statement arises 
 from an entire misapprehension, seeing 
 that the number who are entered as be- 
 ing in the excise branch are also engaged 
 in the weights and mea&ures branch and 
 as inspectoid of gas. Thus one officer 
 sometimes represents Inree, and this cir- 
 cumstance is made the basis of the state- 
 
 ment circulated over vhe country, that 
 three men are doing the work previously 
 done by one. As regards gas inspection^ 
 the number of places in which gas wa.^ 
 inspected in 1877-8 was 11 j in 1880-1, 17 j 
 *he number of inspectors in 1877-S wa.c 
 11, and in 188ai, 16. Of the 13 gas in- 
 spectors in 1880-1, two received 
 only $150 each and one received 
 $250 per annum, these thx-ee being also 
 inspectors of weights and measures. Tlie 
 aggregate salaries paid fbr ^as inspection 
 in 1877-78 were $9,163, and in 1880-81 they 
 were $9,038. So much has been said about 
 the increase in the number of officers 
 that the following statement relating to 
 the Inland Revenue Department will fur- 
 nish an explanation of the increase : 
 
 Statement showing annual expenditure 
 and receipts in connection with 
 weights and measures, equipment 
 and inspection from 30th June, 1876, 
 unti! 30th June, 1881 :— 
 
 1'eab. 
 
 •1876-7.. 
 
 1877-8.. 
 1 1878-9 .. 
 
 1879-80. 
 tI880-l .. 
 
 ExPlii^DlTDRK. 
 
 Equipment. 
 
 $ cts. 
 
 22,O0O.Ya 
 
 4,48'i.37 
 
 3,474.38 
 
 l,75t.37 
 
 240.22 
 
 Con- 
 tlDgencies. 
 
 $ cts. 
 23,382.93 
 25,788.21 
 17,384.69 
 13,426 31 
 15,554,31 
 
 Balariea. 
 
 $ cts. 
 65,026.48 
 51.720.27 
 51,195.17 
 32,371.34 
 44,201.28 
 
 Total. 
 
 $ cts. 
 100,409.14 
 Cl,902 85 
 72,0.'>4.24 
 47,548.02 
 59.995 81 
 
 Beceipts. 
 
 $ cts. 
 51,667.85 
 29,683 81 
 13,222.59 
 17,080.11 
 3i.5(J4 55 
 
 • Fy Order-in-Council of 10th July, 
 1877, J:;o tariff of fees was reduced, but 
 nc J uniformly ; tb reduction varied 
 from 11 to 66 per cent; and by 40 Vic, 
 cap. 15, -ivhen weights and mear> u-es were 
 found on second or subset juenc inspeT- 
 tionc to be correct, Only 25 per cent of 
 the full fee was to be charged. 
 
 \ The Weigiits and Meaaures Act of 
 15th M.ty, l-^.79, only rciiiir-od a biennial 
 instead of an annual inspection, which 
 
 necessarily greatly reduced the gross 
 amouit of fees collected. 
 
 t The amount charged for equipment 
 m 1870-7 CO- ttains some expenditure for 
 GrKS Standards. As there was at that 
 time a vote generally ai)plicabla for 
 equipment of Weights and Mea.sures and 
 Gas [Standards, it was necessary to show 
 all such expenditure together, but since 
 thai date there has beeii nr. special vote, 
 and therefore wh&tever amount has been 
 
 m «. 
 
n 
 
 m L 
 
 spent for that service has appeared in 
 the statement for the service interested, 
 whether Weights and Measures or Gas. 
 
 We might go on over the other depart- 
 ments of the Government showing the 
 same results, but this will suffice, and 
 taken in connection with the general 
 statement, will furnish a sufpcien.t answer 
 to the complaii;it that the expenditures 
 ot Uie Dominion have improperly in- 
 creased under the present Administra- 
 tion. Those increases are, all of them, 
 either in items that are uncontrollable or 
 have relations to works of public utility 
 which the condition of the revenue en- 
 ables the Government to promote. 
 
 THE EHOBY'S BAR-POET MOODY OON- 
 TEAOT. 
 
 It is charged against the Government 
 that, in letting the contract for the Port 
 Moody beotion of the Canadian Pacific 
 Kailway, they lost to the country $209,- 
 255. The facts of the case are the best 
 answer that can be made to this charge. 
 Tenders were advertised for for the con- 
 struction 01 this part of the Canadian 
 Pacitic Kailway, and in answer to the ad- 
 vertisement, fourteen tenders were sent 
 in, rangin*^, according to the bulk sums 
 named vl them, from $2,277,000 to $3,531,- 
 832. The two lowest were D. Macdonald 
 and A. Charlebois,$2,277,(X)0, and Andrew 
 Underdonk, $2,486,255. By the specifica- 
 tions upon which th» tenders were sent 
 ill, bnlk sums were to be named for the 
 work, but each "ender was to be accom- 
 panied by a schedule of prices in detail, 
 upon which that bulk sum was made up 
 by the party tendering. This was done 
 v'ith vhe view of ensuring the good faith 
 uf the ccnLractors, and according to the 
 24th clause of the specification, it was de- 
 clared as follows : — 
 
 " Cash payments equal to about 90 per 
 ceat. of the value of the work done, approxi- 
 mately made up ftorc returns of progress, 
 measur'inients and coMPCtSi.' ay ir , pkices set 
 
 OCT ON TUB 8CHKi:rLJ! HBBBTO ANNBXED, Of fixed 
 
 by the engineer for the work not speci- 
 fied iu eai(i scli'idule, will be made to the 
 contractor monthly, on the written certificate 
 of the engineer that tJie work for or 
 
 on account of which th^> certificate 
 is granted Lhs been duly eii^esuted to bis »»• 
 tisfactioD, and etating the ;value of such 
 
 works COMPUTBD AS ABOVB MBMTIOIJBD, and 
 
 upon approval of such certificate) i y th& 
 Minister ; anc'. the said certificate and such 
 approval thereof shaU be a condition prece- 
 dent to the rjgbt of the contractor to bo 
 paid the RiiAe 90 per cent or any part 
 thereof." 
 
 It will be seen, therefore, froiu this 
 clause, that although the tender was for 
 a bulk sum, the monthly estimates were 
 to be made up S,ccortling to the sbhedule 
 of prices f,ttach6d to the said tenders,, 
 the contractor being entitled to 90 per 
 cent of these estimates. Each tender 
 was to be accompanied by a cheque 
 marked " good" for 5r20,{X)(). When th& 
 tenders were received and opened, it waa 
 found that the tender of Messrs. Mac- 
 donald & Oharlebois was accompanied by 
 a cheque marked " good for twenty day» 
 only." The cheque was dated January 
 24tii, and it therefore expired on the 26tb 
 January, while the tenders were not re- 
 ceived in Ottawa until the first of Fe- 
 bruary ; so that the cheque was in fact % 
 bad cheque at the time it was enclosed 
 with the tender to the Government. la 
 consequence of this, on the sixth of Fe- 
 bruary Mr. Schreibei , the chief Engineer^ 
 reported as follows : — 
 
 "The tender of Messrs. Macdonald k. 
 Cbariebnis is the lowest, but is irregular, in- 
 asmuch as the cheque accompanying it waa 
 marked by the Bank of Montreal on the 
 24th January, «gooJ for two days only?' 
 The tender of A. Onderdonk for $2,48«3,25& 
 consequtntly becomes the lowest ; and as be 
 is possesged ot the. necessary skill and re- 
 sources, and hia tender is practically the, 
 same as the amount of my estimate sub- 
 mitted to the Hon. the Miuister last year, 
 viz., $2,560,000. I recommend that his ten- 
 der be accepted.' 
 
 Sir Charles Tupper sent >Ir. Bradley, 
 his secretary, to Mr. Drummond, local 
 manager of the Bank of Montreal, to ask 
 whether the cheque .vould be paid, and 
 found that it could nob be paid without 
 reference to the head office. This of 
 course at once showed that it was value- 
 less, inasmuch as an accepted cheque of 
 a bank is, like a bank note, payable at all 
 its agencies. The agent of ihe Bank lu 
 
12 
 
 Montreal' telegraphed up that the words 
 might be erased, and that the cheque 
 would be good until paid 5 but to have 
 admitted that would be to do away al- 
 together with the value of this protection. 
 If a cheque can be made good after it is 
 discovered that the tender is the lowest, 
 and the party is willing to, accept it, 
 there is no object in having' a cheque at 
 ■all 5 and upon this ground the Minister of 
 Railways refused to accept the tender, 
 acting, in tact, in accordance with the 
 well-established rule of the department, 
 that the receipt of a bad cheque is the 
 
 same as if bo cheque had be^n received 
 at all. 
 
 OOMPARISON OF THE TENDERS. 
 
 On the question,' however, as to 
 whether the Governttieiit has lost ainy- 
 thing by this Arrangement, we ar6' happily 
 without any difficulty.- Theclatise in the 
 specification that has' been' quoted shows 
 that the scheduled attached to the 
 tenders had an actual value. The 
 engineers have extended those sche- 
 dules with the following result : 
 
 Name of Contrrujter. 
 
 Residence. 
 
 Bulk sum. 
 
 Schedule price. 
 
 D. McDonald tt A. Charlebois 1 . . 
 
 Montreal 
 
 $ 
 2,277,000 
 2,486,266 
 2 864,242 
 2.970,000 
 2,999,735 
 3,06a„000 
 3,169,889 
 3.190,000 
 3,195,706 
 3,349,000 
 . 3,389,000 
 3,389,000 
 3,488,394 
 • 3,531,832 
 
 $ 
 
 3,519,740 
 
 2,4188,255 
 
 3,602,033 
 
 3,343,556 
 
 3,025,391 
 
 3,216,094 
 
 3,320,380 
 
 3,142,185 
 
 3,492,645 
 
 3,422,005 , r 
 
 3,441,025 '" 
 
 3,746,655 ' 
 
 3,549,092 
 
 3,512,962 
 
 AnQicv7 Oaderdonk 
 
 Yale. B , C 
 
 James Jtf array & Co ..... . 
 
 St. Catherines 
 
 Ottawa ■ 
 
 Kyan, Purcell & Ryan... 
 
 Bonis O'Brien & Co 
 
 Montreal. 
 
 Ottawa 
 
 •James Goodwin 
 
 William Davis & (?o 
 
 Do 
 
 The Kiiilway Improvement Co'y of N.A.. 
 
 New York 
 
 F. J. Beemer 
 
 M^o n tr Affcl 
 
 E. J. Charlton & Co 
 
 Quebec , . 
 
 William Ede& Co 
 
 Sau Francisco 
 
 Toronto .... 
 
 A Manning & A. McDonald 
 
 J. B. Montgomery 
 
 Portland, Ojegon . . 
 Toronto.. .:...... 
 
 John Hebert & Co 
 
 
 So that from this it will be seen that 
 so tar from McDonald & Charlebois' ten- 
 •der being the lowest, it stood twelfth on 
 the list according to the schedule at- 
 tached to it. It was $1,242,740 higher 
 than the bulk sum included in the con- 
 tract ; while the difference between the 
 schedule prices extended and the bulk 
 sum in Mr. Onderdonk's tender was only 
 two thousand dollars I The inference is 
 •clear that the one tender was put in 
 in good faith, and the other as a mere 
 speculative bid, under which, if they got 
 the contract, they could sell out for a'good 
 round sum, or going on with the work 
 they cpuld get their estimaie on the 
 
 schedule prices, so that they would be paid 
 the whole amount of their bulk sum, be- 
 fore two-thirds of the work was per- 
 formed. 
 
 In case it should be said that the ex- 
 tension of the schedule prices was made 
 improperly for a purpose, it may be 
 worth while to give the details, in some 
 particulars, showing the difierence in the 
 tender uf Mr, Onderdonk and that of Mc- 
 donald and Charlobois. From these 
 figures it will be seen how utterly dis- 
 honest was the lender of the latter gen- 
 tlemen : — 
 
i 
 
 lis 
 
 )d 
 
 to 
 
 y- 
 
 ly 
 
 le 
 va 
 le 
 le 
 
 e- 
 
 1 
 
 i 
 
 Description. 
 
 McDonald & Ctiarlebois 
 
 Onderdonk. 
 
 Rate. 
 
 Amounti 
 
 Rate. 
 
 Amount. 
 
 Clearing 
 
 $150 00 
 20'' (K) 
 700 00 
 
 8 
 
 1 75 
 75: 
 1. 3-1 
 
 75 00 
 300 
 200 
 
 00 28 
 050 
 12 
 
 $190 500 
 
 46,000 
 
 (2,600 
 
 49 8.S0 
 
 966,175 
 
 66,000 
 
 786,000 
 
 •A3S..325 
 
 214,500 
 
 21o,90O 
 
 112,000 
 1' 3,000 
 29,520 
 
 $35 00 
 
 60 00 
 
 1,600(0 
 
 06 
 
 1 05 
 
 50 
 027 
 
 80 00 
 
 1 50 
 76 
 
 0^5 
 '0 25 
 
 ••10 
 
 $45,850 
 13,800 
 27 000 
 
 Grabblner 
 
 Cros'-loKKlnff 
 
 Fencing 
 
 Solid rock e-fcavation 
 
 37,41 • , 
 
 579,705 
 
 Loosid ** 
 
 44,000 
 
 Kftrtb'workH .... . 
 
 707,911 
 
 
 248,880 
 
 Rip-rap (hand-Uld) 
 
 Rnck-facQd embankments and piers. 
 Framed timber in bridges, wharves, 
 ' <ftc. . ; 
 
 ,107 250 
 
 78,25'J 
 
 100,000 
 
 . Piles driven, special drawings. 
 
 Wroueht iron 
 
 66,500 
 
 24, ao 
 
 
 
 TotaW 
 
 $3,510,740 
 
 $2,488 265 
 
 
 
 
 
 Amount of tender , . . 
 
 $2,277 000 
 
 $2,488,255 
 
 , '" ^ ' ^— - 
 
 
 
 
 
 These are the larger items of the speci- 
 fications, and the figures show the marked 
 advantage of the tender of Onderdonk 
 over that of McDonald & Charlebois. 
 
 The motive for this kind, of thing is not 
 tair to see. Messrs McDonald and Char- 
 lebois knew that Mr. Onderdonk, having 
 the contract for the other part of the line, 
 was deeply interested in getting this as 
 well. They, therefore^ made ahap-hazard 
 bid, far below the lowest estimate of the 
 engineer-in-chief, in the hope that the fig- 
 ures of their schedule . would be over- 
 looked, and they would get the contract 
 and sell it to Onderdonk, as Mr. McDon- 
 ald <iid in the case of a contract awarded 
 him on the Yale-Kamlopps section, which 
 he sold out. The wprthlessness of the 
 checjue first called attention to their ten- 
 der, and thus eaved the country from loss 
 oj^ Mr. Onderdonk from being black- 
 mailed. The estimate of the cost of this 
 work by Mr. f^hreiber was $2,560,000, 
 and the revised'.estimate by Mr. Marcus 
 Smith was $3,0tX),000. In the report of 
 the.latter he says, " I do not think that 
 this sum can be much reduced in strict 
 accordance with the plans." So far from 
 their being anything wrong in the trans- 
 action, the contract has been awarded to 
 the lowest tender, a tender, the good faith 
 of which is attested by the fact that the 
 differen«e between the bulk sum and 
 the soheduie prices extended, is only two 
 tUowsviud uuUarB I . , I . 
 
 THE DISALLOWANCE QUESTION* 
 
 THE STREAStS BILL. 
 
 One of the leading grounds ot objection 
 to the present Government is their, dis- 
 allowance of the Streams bill, and upon 
 the strength of this Act an agitation for 
 what is called by the attractive name of 
 provincial rights, has been, started. On 
 the subject of disallowance there is no 
 doubt of the power of the Dominion Gov- 
 ernment to disallow Acts passed by the 
 Provincial Legislature. The relation of 
 the provinces to the Dpmifjion is precise- 
 ly the same as that of thft< Dominion to 
 the Government of Great Britain. In each 
 case the power of disallowance exists. 
 When the constitution under which we 
 live was being discussed on the .Quebec 
 resolutions, the ;ynited States was just 
 emerging, from a terrible civil war, 
 in which the weakness of the central 
 authority was pamfully manifest. In fact 
 the success of the North was only accom- 
 plished by the assumption of powers by 
 the central Governmeut which, under the 
 constitution, they did not possess. And 
 drawing their inspiratioia frqm the events 
 which had transpired an^l *j^pre transpir- 
 ing in the United SLa,tes, thp framers of 
 the Confederation Act made the central 
 autharit,y in the Government of Canada 
 the,supreme authority. That is the con- 
 stitution, and both parties have acted 
 upon it. No , less than twenty-nine acts- 
 
14 
 
 of Provincial Legislatures have been dis- 
 allowed ; all the legislation of the Pro- 
 vincial liegislatures has passed under the 
 review of the Dominion Government, and 
 no Minister of Justice has ever exercised 
 this power with greater zeal, or 
 with more minuteness of sugges- 
 tion than Mr. Blake. Under 
 his administration of the Department 
 of Justice, lie commented upon a great 
 many of the acts of the Legislature, sug- 
 gesting amendments here and emenda- 
 tions there. Surely, it the power of dis- 
 allowance did not exist, might not be 
 properly used, tfcis review of legislation 
 was simply impertinence on the part of 
 the federal Minister. 
 
 It is said that, while the power of dis- 
 allowance undoubtedly exists, the right 
 to exercise it should be confined to those 
 acts which are strictly beyond the powers 
 of the Provincial liegislatures to pass. 
 But this is an absurd contention. There 
 is no use in a power old) sallowftnce in the 
 central authority, if that is Only to be ex- 
 ercised in the case of acts which are with- 
 out the jurisdiction of the Provincial 
 Xegislatures. In that case the courts have 
 proved a sufficient protection, several acts 
 having in fact already been set aside by 
 the courts ; and any act which is uncon- 
 stitutional may be so set aside. To make the 
 Dominion Government the judge as 
 to the constitutionality or unconstitution- 
 ality of a P^vincial Legislature, would 
 he to give to that Government the pow- 
 ers which pertain properly to the courts. 
 They have It in the general power of dis- 
 allowance ; but they have it in common 
 with their power to disallo\\ any act of 
 a local Jjegislature •vchich is o^'poced to 
 the interests of Canada. That this is the 
 view of the Imperial authorities as to the 
 corresponding power of disallowance pos- 
 sessed by them in relation to Domi- 
 nion legislation, is proved by their disal- 
 lowance of the act of the Canadian Parlia- 
 ment passed in the session of ISGT-S, fix- 
 ing the salary of the Governor-General. 
 By the British North America Act, the 
 salary of the Governor-General was fixed 
 at £10,000 a year, "until the Parliament 
 of Canada should otherwise determine.'' 
 Not only, therefore, was there an im- 
 ^)lied authority conferred upon the Can- 
 
 adian Parliament to alter that salary, but 
 it was an expressed authority, the salary 
 being fixed only until the Parliament of 
 Canada should otherwise determine ; and 
 yet when the Parliament of Canada did 
 otherwise determine and passed the act 
 reducing the salary to £8,000, the Impe- 
 rial authorities disallowed the act, and no 
 one that we know of ever questioned their 
 right i.~ do so. 
 
 The particular case, however, which 
 has given rise to this discussion is the 
 Streams Act of Ontario. The facts with 
 regard to this act are these : — Mr. Peter 
 MacLaren, an extensive lumber manu- 
 facturer and mill owner in the eastern 
 part of the province, had expended not 
 less than $250,000 in the ^puprovement 
 of certain streams which, before the 
 construction of such improvements, were 
 utterly useless for any commercial pur- 
 pose, but which, by reason solely of such 
 expenditure, have become useful avenues 
 for the transportation of timber and saw 
 Idas to market. On the 16th December, 
 1880, the Court of Chancery of Ontario, 
 after a long and exhaustive investigation 
 held at the towns of Perth and BrookviL'e, 
 made a decree declaring that Peter 
 MacLaren was entitled to the exclusive 
 use of the improvements erected by 
 him, or by those through whom 
 he claimed as purchaser, certam 
 streams flowing through his lands ; and a 
 rival lumbering firm, who were asserting 
 a right to use these improvements with- 
 out paying for them, were restrained by 
 an injunction from so doing. These parties 
 were offered the use of the improvements 
 at a reasonable toll, if they would acknow- 
 ledge Mr. MaoLaren's proprietary rights, 
 but this offer they rejected. They were 
 prominent Liberals ; Mr. MacLaren, un- 
 fortunately for himself, Was a Conserva- 
 tive 5 and his opponents therefore applied 
 to the local Legislature, controlled by 
 their friends in the local Government, 
 to get an act passed which would enable 
 them to use tliese improvements practi- 
 cally without compensation. It is impor- 
 tant to remember, as was established be- 
 yond controversy, that before the making 
 of the improvements in question and when 
 these streams were in their natural state,, 
 i it was impossible to drive logs Uowii ioei 
 
 T 
 
 J. 
 
 *> 1 
 
 ^ I 
 
16 
 
 X . 
 
 • 
 
 ui \ 
 
 Mississippi above the High Falls or down 
 the Buckshot or Loose Creeks, even 
 during freshets ; and it is said that the 
 same is also true of the south branch and 
 Swamp Crciek. It was also estab- 
 lished in the evidence taken be- 
 fore the Court that the whole value 
 ot these streams, as floatable avenues of 
 commerce, had been occasioned by the 
 expenditure of Mr. MacL«ren, and others 
 of whuse lands he had, from time to time, 
 become the pui chaser. Skilled lumber- 
 men and engineers exploring in the local- 
 ities on numerous occasions })ronounced 
 many of the places utterly impassable, 
 and the consequence was that the grand 
 timber limits along the upper portions of 
 these streams were, and would tothisday 
 have remained, comparatively valueless, 
 but for the expenditure on im- 
 piovements thereon. It is said 
 that in no stream in the 
 Province of (Ontario . can works of 
 similar magnitude be found as the result 
 of private and individual eflfort. Mr. 
 M^icLaren had been permitted, until his 
 right was questioned bv Messrs. Caldwell 
 during the year 1880, to use these im- 
 
 {)rovements, his rights being respected 
 )y the lumbermen in the district. The 
 expenditures on the improvements were 
 made since the courts of the province 
 had declared that the general public had 
 no right to use streams which, in 
 their natural and unimproved state, 
 were not pt use for driving 
 logs and timljer even during freshets; 
 and in making such a large expenditure 
 MacLaren fully believed that he was im- 
 proving his own private property, and 
 that no attempt would be made to de- 
 prive him of his rights, arid tocompel.him 
 to share the benefits of his own property 
 with a firm that had not expended a sin- 
 gle dollar in improving the stream. In 
 the case of MacLaren vs. Buck, tried in 
 1875, Mr. Justice Gwynne, in giving his 
 decision, said; "By this decision we 
 should be bound, even if it did not, as it 
 does by its sound sense, recommend it- 
 self to our approval. The statute 
 therefore does not interfere with the right 
 at common law of the proprietor of land 
 on both sides of the stream down which, 
 in its natural state, without improve- 
 
 ments, logs, timber, &c., could not be 
 floated." The object of the Act of Parlia- 
 ment passed was to enable Mr. Caldwell 
 to obtain the use of these improvements 
 for which lie had paid nothing, by virtue 
 of an Act of Parliament. The Act was 
 objectionable on two grounds, first, that it 
 interfered with undoubted private rights 
 
 was, in fact, an act of confiscation, 
 
 which, if the power of a central 
 authority is worth anything at all, ought 
 to be prevented by ttie exercise of that 
 power ; and in the next place it was an 
 interference with a suit then pending, 
 and an attempt to override the decisions 
 of the courts by an Act of Parliament, not 
 only to declare what, in the future, should 
 be the law, but to declare what had al- 
 ways been the law, and that in a sense 
 different from the decisions of the courts 
 down ' to that time. It is not a ques- 
 tion of whether it would be wise for 
 the Province of Ontario to take posses- 
 sion of all improvements on streams 
 down which timber and snwn logs are 
 floated — that is a fair question for dis- 
 cussion ; but certainly, by every principle 
 of jurisprudence, wlien the Government 
 undertook to do that they should have 
 compensated the parties for any improve- 
 ments made upon those streams in good 
 faith and under the impression, sanc- 
 tioned by the decisions of the courts, 
 that they had a right to make them for 
 their own use. A good authority on the 
 subject says : — " It is a rule founded in 
 equity and is laid down by jurists, as an 
 acknowledged principle of universal 
 law, that a jirovision for compensation is a 
 necessary attendant on the due' exercise of 
 the power of the law-giver to deprive an 
 individual of his property without hia 
 consent." This was precisely one of those 
 case^ where the authority of the central 
 Government ought to be exercised, if pri- 
 vate and personal rights are to be pro- 
 tected in Canada. 
 
 THE CANADIAN PAOIFIO BAILWAT. 
 
 The Opposition describe the contract 
 entered into with the < anadian Pacific 
 Railway Company to construct the Pacific 
 Eailway as the " Giant among Swindles,"^ 
 and p^, " the most disastrous public con- 
 
1 
 
 16 
 
 tract," and " the greatest railway swindle of 
 the 19th century." These are very strong 
 expressions, and a mere statenient of the 
 facts will show how little they are de- 
 served. The building of the Pacific Rail- 
 way was part of the terms of the en- 
 trance f British Columbia into Confede- 
 ration. At that time both parties agreed 
 that it should be build by a company, 
 aided by subsidies of land and money, but 
 so as not to increase the burden of taxa- 
 tion. The only difference between parties 
 was that embodied in Mr. Dorion's amend- 
 ment to the effect that it should be built 
 by a company and " not otherwise." 
 The first contract let for building 
 the road was that with Sir Hugh Allan 
 entered into in 1872. That arrangement 
 fell through because Sir Hugh Allan was 
 unable»to obtain the necessary capital in 
 England to build the railway. When Mr. 
 Mackenzie came into office almost his 
 first act was to pass the Canadiaii Pacific 
 Railway Act,'in which he provided for the 
 cbfastmction of the railway by a company 
 who were to be given subsidies 
 in land' and money as specified by 
 iM Acit. And aMost the last act 
 he performed before he went out of ofl^ce 
 was to put an advertisement in the papers 
 announcing that the Governiiaent were 
 anxloUs to constriict the railway on the 
 teriisof the Act of 18,74, and soliciting 
 oftefa'from capitalists for that purpose. 
 In entering into the contract, therefore, 
 in 1880, for the construction of the Pacific 
 Railway with the present Company, the 
 Government have acted in accordance 
 with what has been the poUcy of both 
 parties since 1872. There should theie- 
 fore'be no controversy as to the propriety 
 of letting the contract to a convpany. 
 
 THE PREaENT AND FORMER CONTRACTS. 
 
 The only question is as to the comparative 
 value of this contract. The only element 
 of doubt in these calculations is as to the 
 value of the land. ''- The Opposition are 
 disposed to value it at $3 an acre, although 
 they have over and o\'^r again declared, 
 when discussing the question of the Paci- 
 fic Railway before the bargain Was en- 
 tered into,' that all the returns from the 
 land grant wolild be absorbed in the cost 
 of adminititration and bettlement. It is 
 
 worthy of note, however, that the higher 
 the price put upon the land the more 
 favorable does the present contract ap- 
 pear as corapnred with tiie other pro- 
 posals. Taking the land at $2 an acre we 
 
 have the following results : — 
 
 THE BIB HUGH ALLAN CONTRACT. 
 
 54,500,000 acres of laud at f 2 an 
 
 aere ..$109,000,000 
 
 Cash subsidy 30,000,000 
 
 Total $139,000,000 
 
 mackbnzik's act of 1874. 
 55,940,000 acres of land, iuclud- 
 ing the land subsidy to 
 
 branches at $2 an acre $111,880,000 
 
 Cash subsidies, $10,000 per mile.. 27,970,000 
 Grovernment guarantee, four per 
 cent on $7,500 per mile 20,977,500 
 
 Total $160,827,500 
 
 THE PRESENT CONTRACT. 
 
 Existing Government contracts 
 
 completed • $ 28,000,000 
 
 Cash subsidy • 25,000,000 
 
 25,000,000 acres of land at $2 an 
 ^re 50,000,000 
 
 'Total... $103,000,000 
 
 So that as to the b^lk sum the contract 
 is $36,000,000 less thaln they entered into 
 with Sir Hugh Allan, and ^7,827,500 less 
 than tlmt proponed by Mr. Mackenzie. 
 If it is said that the land is more valuable 
 now because the country is better known, 
 we can even take this view. Assuming 
 for the purposes of the present contract 
 t'at the land }s worth $3' an acre, although 
 tiie Pacific Railway Company are selling 
 it at this moment at $1.50. the total sub- 
 sidies under the contract are stih $3o,U00,- 
 000 less than Mr. Mackenzie's proposal, 
 even assuming the land in the latter caso 
 at only 92 an acre. A common argument 
 used is that Mr. Mackenzie's proposal was 
 made when very little was known of the 
 coun'-.rjrand thatit is not therefore fair 
 to compare the subsidies of to-day with 
 the subsidies of that day. Here is the 
 answer to be mad4 to this contention. 
 Although Mr, Mackenzie's Act was passed 
 in 1 874 the advertisement, asking for ten- 
 ders under it was published in 1878, so 
 that down to that time at any rate he diu 
 
I 
 
 17 
 
 r 
 
 . I 
 
 "tiot consider the subsidy as too high ; and 
 in 1879, when he wasm Opposition, on the 
 debate, on tlie Pacific Railway, Mr. Mac- 
 kenrie thus referped to his own proposal 
 'Wliieh'even then he believe«l to be utterly 
 insufficient to secu'i'e the construction of 
 the Canadlcn Pacific Railway ti."'"' 
 
 "The hon. gentlemen opposite and the 
 ■whole country aie aware that we solicited 
 tenders in England for some months upon 
 this ground, before hon. gentlemen opposite 
 caipe into office ; also that Mr. Sandford 
 Fleming, the Chief , Engineer, was 
 Instructed while in London, to place 
 himself in communication with con- 
 tractors and financial men, and 
 also to obtain the assistance of mr John 
 Rose, who in many things bad been the 
 active, energetic and patriotic agent of the 
 Dominion wilh a view to the carrying out of 
 this scheme. But I am informed that not- 
 "Withstanding all our efforts, we signally 
 failed in obtaining one single offer (there 
 ■was one imperfect offer made) for the con- 
 struction of the railroad on those terms, 
 ■which were the grant of 20,000 acres and 
 $10,000 cash per mile, with a guarantee of 4 
 i?OT cent, upon such balance as might be re- 
 presented as necessary. No terms 
 •could be more explicit; it would be 
 tllfficidt to mention terms inore favorable, and 
 yet the hon. gentleman seems to expect, by 
 his speech, that the colonieation scheme 
 "With the 100,000,000 acres Instead of the 50,- 
 -000,000 acres and $30,000,000 current money, 
 is somehow or other, to succeed in getting 
 this road built. His own remarks showed 
 to-day that it is utterly useless at present for 
 bim to expect British railway contractors, or 
 great financial firms to engage in any rail- 
 toad enterprise on this continent. Much 
 of this is due to the want of confidence 
 ■which ho tells us is experienced in, finan- 
 cial circles in Britain, and a great 
 deal is due to the unwise legislation 
 In Canada and the provinces with respect to 
 railway Hne^, and to the fact that foreign 
 capitalists have obtained little or no return 
 for the money they have laid out in this 
 -country. 1 have made up my mind long ago 
 that it will be exceedingly difficult for a 
 population of 4,000,000 so to conduct finan- 
 cial transactions connected with the building 
 of that railroad of 2,600 miles, acrofie an un- 
 known and almost untrodden continent, in 
 snauy places extremely difficult. I frankly 
 SSiy now aiUSC my «xperieuce iu endeavoring 
 
 to accomplish something in that directioai 
 that I fear we shall be incapable of accomp« 
 lishing anything in that direction at pre* 
 sent." 
 
 It will thus bo seen that in 1879 Mr, 
 Mackenzie, with all tlie experience he had 
 1 derived, looked upon the construction of 
 the railway by a company with the enor* 
 mous subsidies providad in his act of 
 1874 as an impossibility. His concludina 
 words in view of what was aooomplishea 
 within a year afterwards ^re very signifi' 
 C£\nt :— 
 
 "I frankly say now after my experienoa 
 in endeavoring to accomplish something In 
 that direction that I fear we shall be in. 
 capable of accomplishing anything in thai 
 direction at present." 
 
 THE COST OF THE RAtLWAT. 
 
 The popular Opposition argument ii 
 that the road to be built by the Pacific 
 Railway Company will only, according ta 
 the estimates submitted by the chief 
 engineer in 1880, cost $48,500,000, and fqp 
 this the Government gave 25,000,000 
 of acres of land and $25,000,000. 
 Even admitting these estimates were 
 correct, this arrangement is equivalent 
 to a sale for cash of 25,000,000 of land 
 in the Northwest Territories at a dollar 
 an acre. When we remember tliat tha 
 Government are at this moment offering 
 land for settlement in the most favored 
 parts at $1.25, from which ia to be de. 
 ducted the cost of administration and 
 settlement, it must be admitted thai it 
 is a tolerably good bargain, es- 
 pecially so when in addition' to the 
 sale of this land the Govemmdt^ti haya 
 secured the construction of a railway, 
 the interest of a large corpotattion in the 
 settlement of the country, and' the im. 
 provementin the valtiie ' of the lands re. 
 mainmg in the hands of the Government 
 by means of the transportation afforded 
 to settlers. These atatetuents, however. 
 that the roads to be built by the Syndi- 
 cate will only cost $48,500,000, were not 
 accepted by the Opposition at the time 
 they were made. The estimate 
 was based upon the rate of 
 Wages prevailing at that time, which 
 were very much less than they are to- 
 day, it was for the cheapest kind of a 
 
18 
 
 oolonization railway, while the Pacific 
 Railway Company are building a first-class 
 substantial road. It was based, in fact, 
 on a contract let for the firat 100 miles 
 west of the Red River. The contractor for 
 that 100 miles subsequently failed, and 
 the work done by him has been taken 
 up by the Pacific Railway Company, and 
 a superior road built. 
 
 MR. BLAKE's opinion OF THE COST. 
 
 We have, however, some authorities on 
 this point which the Opposition will not 
 dispute. Mr. Blake, in discussing the 
 question in the session of 1880, thus gave 
 his estimate of what it would cost to build 
 the railway as a Government work : — 
 
 " According to the old system of construc- 
 tion that central section would cost, includ- 
 . ing the other items I have mentioned, alto- 
 gether over $42,500,000, leaving out entirely 
 both ends. "What are the ends to cost ? $45,- 
 000,000 is, as 1 have stated, the cost from 
 Edmonton to Burrard Inlet, on the west; 
 and from Fort William to Nipissing, on the 
 east, the hon. member for Lamb- 
 ton estimates at a length of about 
 650 miles and a cost of $32,500,000. 
 Thus the ends make up together $77,000,- 
 000, the centre and the past expenditure 
 $42,500,000, making a total ot $120,000,000, 
 and that wholly exclusive of the legitimate 
 and necessary charge, which must be added 
 in all cases, the charge for interest during 
 construction. In all enterprises of this de- 
 scription every estimate with reference to 
 expenditure includes a provision for interest 
 on capital provided during construction, be- 
 fore the enterprise becomes productive, and 
 this item is to be considered in the reckon- 
 ing. The House may be surprised to learn 
 that on our expenditure up to this time, and 
 rating the interest at 4 per cent only, as the 
 money was raised partly on guarantee that 
 interest up to 30th June next will exceed $1,- 
 250,000. Taking the estimates of ten days 
 ago, if $60,000,000 are expended in the next 
 ten years, there will be a total of over $24,- 
 500,000 for interest, calculating interest on 
 future loans at 5 per cent, the lowest rate, as 
 I believe, at which the money can be raised." 
 
 'That was as to the c ost of building the 
 railway, but Mr. Blalce referred to an- 
 other element of cost which was quite as 
 great, namely, the coat of \?orkiQgit after 
 
 it was built, of which the country to-day 
 is relieved oy this contract. 
 
 " Now, besides this enormous expense to 
 which I have referred, besides this aggregate 
 of I do not kpow how many millions of dol- 
 lars, the interest of which, according to the 
 old estimal^JB, will be six millions a year, we 
 have got to consider the ruuDing expanses. 
 These expenses Mr. Fleming estimated in 
 former days at $8,000,000 a year, but my hon. 
 friend from Lambton estimates them at a 
 gross sum of $6,750,000 a year for the whole 
 line or $4,500,000 a year from Port Williani 
 to the Pacific. Of course, against this sum 
 are to be set the receipts, which will be con- 
 siderable and will, in some sections of the 
 road, perhaps, meet the expenses ; but in the 
 early days, and fov a long time, the road as a 
 whole will, I believe, be run at a loss. Thus 
 you have a charge for intere>t wnd expenses 
 for this Pacific Railway, to which if you add 
 the cost of interest during construction places 
 it, according to any estimate you may form, 
 wholly beyond the resources of this country 
 to do the work in that way, and at the rate 
 that the hon. geutleman has suggested " 
 
 These were the views of Mr. Blake in 
 the month of March, 1880, some eight 
 months before the Pacific Railway con- 
 tract was entered into ; and even allowing 
 for Opposition exaggeration, they show- 
 how much the country has gained by es- 
 caping from the indeterminate liabilities 
 connected with the construction and 
 working of this railway as a consequence 
 of the contract entered into with the Pa- 
 cific Railway Company. 
 
 It is said, however, that the comparvy 
 have only the easy^iortionsof the raihyaiy 
 to buRd, the Government continuing to 
 construct the heavier portions. This state- 
 ment is untrue. The Pacific Rail^vay 
 Company have to build 650 miles north of 
 Lake Superior, which every one knows to 
 be very heavy work. They have to build 
 450 miles through the Rocky Moun- 
 tains from the eastern slope ta 
 connect with the Yale-Kamloops 
 line, in addition to the prairie 
 section which they are construct! ag now 
 as a first-class railway, with iron bridges 
 and steel vails. It is in fact impossible to 
 estimate the cost of railways before they 
 are built. The capital of the Grand Trunk 
 Railway to-day represents four times the 
 original estiokate'of its cost. The Gov- 
 
 t 
 
 y m^ 
 
 
19 
 
 ernmewt railways of the Province of Que- 
 bec have cost nearly double the original 
 contract price, and the section of the 
 Pacific Railway between Thunder Bay 
 and Selkirk will cost 50 per cent, more 
 than the engineer's estimates. All 
 these contingencies are assumed by the 
 Canadian Pacific Railway Company, the 
 Government being relieved from them by 
 means of tliis contract. We know 
 what our liabilities are connected 
 with the Canadian Pacific Railway 
 contract. Before it was entered into 
 these liabilities were sources of anxiety 
 to every thoughtful man in the country. 
 By the contract we have secured the con- 
 struction of the railwjiy far within the 
 amount provided by Mr. Mackenzie as 
 the annual expenditure in connection 
 with it in 1874 under the Carnarvon 
 terms. By these terms he appropriated 
 $3,000,000 a year for the completion of 
 the railway from West of Lake Superior 
 to the Pacific Ocean. To-day if every 
 obligation incurred by the construction 
 of this railway were completed, if all the 
 subsidies were paid, the annual charge 
 upon the Dominion, taking the 
 interest at 4 per cent., would 
 only be $2,120,000, or $880,000 less, for 
 the whole road, including the portion 
 north of Lake Superior, than Mr. Mac- 
 kenzie appropriated in 1874 for the line 
 from Thunder Bay to the Pacific Ocean. 
 It is impossible to imagine an arrange- 
 ment more in the interest of the country 
 than the contract for the construction of 
 the Canadian Pacific Railway. 
 
 THE QUUESTION OP EXEMPTIONS. 
 
 It is claimed, however, that en- 
 ormous privileges are granted by 
 this contract. In the campaign 
 sheet issued by the Opposition 
 in Parliament, we have these two state- 
 ments, which may be taken as fair speci- 
 mens of khe kind of arguments used by 
 the Opposition: — 
 « Exemption from duty on rails, 
 cars, engines, lumber, wire and 
 
 all material (estimated) $5,000,000 
 
 « Exemption from tax on land 
 
 grant for 20 years (estimated), 
 
 $5,000,000; and on road and 
 
 ''capital forever (estimate capi- 
 
 taliaed), $7,250,000 12,250,000 
 
 This statement is grossly inaccurate. 
 In the first place, the exemption from 
 duties do not include cars, engines and 
 lumber, as stated. The exemptions, 
 according to the contract, are on " steel 
 rails, fish plates, bolts, nuts, iron 
 for bridges used in original con- 
 struction of the road, wire and ap[)aratu3 
 for the ordinary construction and equip- 
 ment of telegraph lines." Now, so tar as 
 steel rails are concerned, there is no duty 
 upon them at this moment, nor has there 
 ever been. There is therefore no pri- 
 vilege granted to the Canadian Pacific 
 Railway in this that is not given to all 
 others. The rolling stock has to pay duty. 
 Everything, in fact, pays duty to-day ex- 
 cept fish plates, bolts, nuts, iron for 
 bridges, wire and apparatus for original 
 construction and equipment of telegraph 
 lines, and it is only for use in the original 
 construction of the railway. The esti- 
 mate made hy the engineers of the De- 
 partment declares tliese exemptions would 
 amount in the aggregate for the whole 
 road to about $110,000, instead of $.3,000,- 
 000 as stated by the Opposition in their 
 campaign sheet. 
 
 THE LAND TAX EXEMPTION. 
 
 Then, as to the exemption from 
 taxation of the land grunt for 20 
 years,and on the road and capital for 
 ever, which the Opposition campaign 
 sheet estimates at $12,250,0(X), that esti- 
 mate is equally absurd. So far as the ex- 
 emption fi-om taxation on the land grant 
 is concerned, it is actually less than was 
 provided under the Act ot 1874. Mi'. 
 Mackenzie provided m that for a grant 
 of land of 54,000,000 in round figures, 
 and he provided that as to two- 
 thirds of it the administration of 
 it should remain in the hands 
 of the Government, the proceeds being 
 handed over without deducting the coat 
 of administration to the company. Under 
 these circumstances there would be some 
 34,000,000 acres of land which remained 
 in tne hands of the Government that 
 would be exempt from duty for all time, 
 or until sold and not simply for 20 years, 
 as provided by this contract. Then, 
 again, Mr. Blake, when Minister of Jus- 
 tice refused to recommend the sanc- 
 tion of an act of the British Co- 
 
20' 
 
 I » 
 
 \fjt 
 
 lunibia j.egislaturo imposing taxes upoii 
 tho land which has been rcservcl 
 bv the Lieutonant-Governor, upon 
 the groun.l tliat as these lands 
 would be required to aid in tho con- 
 f^truction of tlio Pacific Tiailway, any tax 
 upon tlioni would be a serious impedi- 
 mont to their usefulness for that ol))eCt, 
 thus affirmin;^ the princii)lG that the land 
 Bhould be free from taxes. In _ tho State 
 of Minnesota and in Wisconsin, and in 
 nearly all the Ktates of the Union where 
 land grants have been given ior the 
 construction of railways, the land 
 is exempt from taxation until solU 
 or occupied. In this case, the racific 
 Railway are selling their lands 
 as rapidly as possible. They are givmg 
 great inducements to settlers to go upon 
 them, and in some cases they have so d 
 large blocks to companies upon condi- 
 tions of settlement, in every case where 
 lands are sold they are subject +o taxa- 
 tion at once, so that tho lands are 
 precisely in the same position as if they 
 remaineil in the hands of the Govern- 
 ment, and it is perfectly absurb to talk 
 about $5,()00,0U0 or any other sum as the 
 value of this concession. 
 
 THE GENERAL TAX EXJTMPTION. 
 
 Then as to the exemption of the road 
 and capital from taxation for 
 ever. There is quite as little in that. ^ In 
 the provinces of Nova Scotia and ^ew 
 Brunswick railways are free from taxation 
 by law. In the Province of Ontario sub- 
 sidies are given to the consiruction of 
 railways by the municipalities fav in ex- 
 cess of the value of any exemption tluit 
 caiA be made. It should be remembered, 
 hov^ever, that the exemption is onJyupon 
 the i-oad bed. The capital of railways is 
 not subject to taxation anywhere simply 
 because it has no municipal habita- 
 tion and therefore cannot bo taxed, ihe 
 rolling stock of railways is not subject to 
 taxation anywhere because it does not 
 belong to any particular locality, arid it is 
 within t' '6 experience of people in this 
 countrjOthat it is not taxed. It is 
 simply tiie ground between the fences ot 
 the railway, valued as farm lands without 
 respect to the improvements made upon 
 them by the cDnstruction of the railway. 
 Whatever that amounts to it amounts to 
 
 vor^ little, as anyone' can ascertain by m- 
 ..uiring at tho crftico of the municipal 
 (•Icrk in any township in (Jntano or (Jue- 
 boc how much tho railways pay m muni- 
 cipal taxes. It is simply in tho nature ot 
 bonuses given by settlei^ to the raiUvay. 
 It is all th^y contribute towards tho 
 construction of it and it is certainly not 
 too iniich to ask. » 
 
 THE SO-CAlJiED JIONOPOLY CLAUSES. 
 
 And, finally, as to what is called 
 the monopoly clause of the con-, ; 
 tract, that is, a clause adopted in the m. , 
 torest of tho country, not of tho company, 
 although tho company will undoubtedly . 
 derive advantage from it. It has been tlx^ 
 Dolicy of tho CantwUan Government tor 
 all time. In 1872 three acts were passed. , 
 incorporating independent companies for,, 
 tho construction of railways fi-oin the 
 boundrtvyinto tho interior ot Manitoba., 
 Tiiev each contained a clause requiring 
 a p/oclamation of the Governor-in-Ooun- , 
 cil to bring them into effect. During the 
 time Mr. Mackenzie was in office Mr. Geo. 
 Stephen, President of the Cana_dian 1 aci- 
 fic Railway Company, who was interested 
 in tho St. Paul & Manitoba Railway, made 
 application to that gentleman to issue a 
 proclamation to brmg into elfect one of 
 the charters in which he was interested. 
 Mr. Mackenzie refused to do this on the 
 ground that the trade of the .Northwest 
 Territory must be resei /ed for the Oan- 
 adian.racilio Railway, and that ho wor«a 
 not permit independent lines to be buiit 
 upon tlio frontier. In 1870, when a num- 
 ber of charters were sought in tho Domin- 
 ion Parliament, Sir Charles Tupper, in the 
 Ila'lway Committee, announced the policy 
 of the Government, which was, that there 
 shoul.lbdno charter allowed to tap the 
 boundary or go within 20 miles ot it, upon 
 the ground that the trade of the North- 
 west Territory must bo reserved ior the 
 trade of tho Canadian Pacihc Railway, to 
 assist in its construction as a_ Canadian 
 I work. Mr. Mackenzie, at that time leader 
 of the Opposition, assented to this view, ^ 
 and declared that it met with his entire 
 approval, was in fact in accordance wit.i 
 the policy he himself had pursued. It is 
 iu.st as important, thereiore, that tbe 
 I trade should bo reserved lor iho Canadian 
 
 V i 
 
 »/ 
 
21 
 
 . fl . 
 
 >/ 
 
 'M^^ 
 
 Pacific Railway when it ia in the handa of 
 a company a» if it waa in the hands of 
 the Government. And that ia all there in 
 in regaril to the monopoly cliuiae by which 
 is BBCured the conatruotion of an all rail 
 road on Canadian territory, connecting 
 British Columbia and the Northwest with 
 the older provinces. In order to ac- 
 complish that it ia absolutely necessary 
 that American linos should not be per- 
 mitted to tap the trade of the country at 
 intervala and draw it oil to American rail- 
 ways and centres of commerce. 
 
 FREIGHT RATES OP TUB RAILWAY. 
 
 What the people of that country 
 are interested in is that there 
 shall be no monopoly in the 
 sense of high rates of freight. With 
 in the territory there ia no monopoly. 
 Several charters have been given for the 
 construction of railways from Winnipeg 
 westward, in direct opposition to the Ca- 
 nadian Pacific liailvvay, and bo little is the 
 Government disposed to grant monopoly 
 of traffic to the Canadian Pacific Railway 
 that they have actually aided, by sub- 
 sidies in land, two of these opposition 
 lines. From Winnipeg, which will be- 
 come the great distributing point of the 
 Northwest, there will be two outlets, one 
 north of Lake Superior and one at Thun- 
 de rBay, thence by steamers on 
 the lakes. This will secure for 
 the people of the Northwest most 
 ample competition in the mat- 
 ter of freight rates, and the charter pro- 
 vides the most complete security for the 
 public, by giving to the Government con- 
 trol over the rates of freight. Under the 
 law, as it existed in Canada for many years, 
 no railway could charge a freight rate until 
 they had submitted their tarift' of rates 
 to the Government, antl it had received 
 the sanction of the Governor-in-Council. 
 llaving once secured that sanction, the 
 Government could not interfere with the 
 charges until the company were receiv- 
 ing 1.0 per cent, upon the capital invested. 
 In this case the Government altered the 
 law and reduced the profit which the 
 Company are entitled to receive before 
 an interference can be made with their 
 tarifl' of rates, to 10 per cent. They also 
 passed a law declaring that the capital 
 actually invested upsn which i^rofit was 
 
 to be drawn, should be money invested 
 irrespective of all subsidies from the 
 Government, and of all moneys derived 
 from the Bale of bonds bearing a fixed rate 
 ot interest* That waa as perfect a security 
 as could possibly have been arranged. 
 What was the result ? The Government 
 have assented to a tariff of rates, but for 
 one year only, retaining in their handa the 
 power of constant revision — and this 
 because of the rapid development of the 
 country which would make rates, which 
 might to-day be considered as very 
 reasonable, altogether too high five or six 
 years from now when the country gets 
 filled up. The Miniater of Railways dur- 
 ing the last session of Parliament sub- 
 mitted a statement carefully pre- 
 pared by tlie oflicers of his Depart- 
 ment of the rates of freight 
 on the following railways : — Intercolonial 
 Railway, Prince Edward Island Riiilway, 
 Canadian Pacific Railway Company, Cana- 
 dian Pacific Railway (under Government;, 
 C!entral Vermont Railway, Toronto, Grey 
 & Bruce Railway, Canada Central Rail- 
 way, St. Paul, Minneapolis & Manitoba 
 Railway, Northern & > orthwestern Rail- 
 way, Grand Trunk Railway, Chicago, Mil- 
 waukee & St. Paul Railway, Atchison, 
 Topeka 6c Santa Fe Railway, Northern 
 Pacific Railway, Union Pacific Railway, 
 Chicago, Burlington & Quincy Railway, 
 Chicago & Northwestern Railway. 
 According to this statement the average 
 of 13 roads, excluding the Government 
 railways, is 45^ cents ; of the Canadian 
 Pacific Railway, 34 cents ) and of six 
 roads 06^ cents and the Canadian 
 Pacific Railway 45 cents. From this 
 statement it appeared further that the 
 first tiling the company did was to reduce 
 their taritT below the amount which the 
 Government had charged for the sanie 
 service before the road passed out of their 
 hands, and that its rates are considerably 
 below those of many roads. The Atchi- 
 son, Topeka & Santa Fe Railroad charges 
 75 cents for the service, for which the 
 Canadian Pacific charges 45 cents, the 
 Northern PacTic charges 80 cents for the 
 same service; the Union Pacific GO cents; 
 the Chicago, Burlington & Quincy Rail- 
 road 59 cents, and so on. The same re- 
 lation h held through the various classes 
 
22 
 
 of froight on these railways. As a mat- 
 ter of fact tJie rates on the Canadian Pa- 
 cific, ns fixed hy this or<ler-in-counoil, 
 aro about midwiiy between the winter 
 an(i summer freights on the Grand Trunl< 
 jtnilway. Tlu^ae facts aro sufficient to 
 show tiiat while, by this so-called mono- 
 poly clause, we seouro the trade of the 
 Northwest for our Canadian system of 
 railways, and our Canadian ports and 
 business men, at the same time, by the 
 arrangement of tariff rates, we have se- 
 cured for the settlers in the Northwest 
 actually better terms than the settlers in 
 corrosjjonding districts in the Westerri 
 States are enjoying. 
 
 THR IlItANCII MNES. 
 
 There is another feature connected 
 with this bargain, that relating 
 to the branch lines, which is 
 worth while referring to. The Govern- 
 ment of Mr. Mackenzie, by a bill intro- 
 tlucod by Mr. Mills in 187«, proposed 
 a system of constructing colonization 
 line-. Under that bill any five persons 
 making application could obtain a char- 
 ter lo build a railway, provided it did 
 not/;o within 40 miles of the Canadian 
 Paciii'' Tliey wore entitled to a land 
 grant varying from 6,400 acres per mile 
 to 1 2,000 acres, or to a commutation of 
 the lanil grant for a money subsidy of 
 $10,000 a mile. The Paciac Kailway 
 Company have already located a thou- 
 sand miles of branch lines. They have 
 constructed nearly 100 miles, and are 
 going on with the work of construction 
 very rapidly. This thousand miles of 
 railway will be built by them without a 
 dollar of subsidy of any kind from the 
 Dominion Government, and none of the 
 exemptions applied to the main line are 
 applicable to these branches, so that in or- 
 der to make a fair comparison between the 
 vfork they are doing and the cost to the 
 country and the policy of the Mackenzie 
 Government in relation to the Pacific 
 Eailway, it is necessary to add to the lat- 
 ter $10,000,000 for branches, which, under 
 the present contract, are being built for 
 nothing. 
 
 9 THE SECOXD SYNDICATE. 
 
 There is but one argument remain- 
 ing to be noticed, and that is that 
 another company offered to do this work 
 
 for a great deal leas money. This ae* 
 cond syndicat* was probably the 
 most discreditable piece of political tac- 
 tics which has ever been resorted to by a 
 parliamentary party. It was compo8e(i of 
 gentlemen, aM of whom were supporters 
 of Mr. Mackenzie, seven of them being 
 defeated candidates for Parliament. Dur- 
 ing all the time that Mr. Mackenzie wag 
 looking for some one to build the rail- 
 way on terms which as has been seen 
 were much more liberal than tiiose that 
 are now given, they never moved. All the 
 time that the present Government were 
 urging in Parliament their anxiety to , 
 secure the construction of the railway by 
 maans of a company, they never moved. 
 Sir John Macdonald at a pic-nic at Bath 
 in June, 1880, announced that some offers 
 had been made to the Government for 
 the construction of the railway, and that 
 he hoped to be able to make arrange- 
 ments with a private company to build 
 the line. That was, in fact, an invitation 
 to any capitalists who might desire to 
 undertake the work to place themselves 
 in communication with the Government. 
 When the Ministers were in England we 
 had daily reports of their progress, and 
 yet these gentlemen remained silent, not 
 even suggesting that they would under- 
 take the work. In October, whe-i ,>u 
 election was going on in Brorae, Siv. 
 Charles Tupper announced that the ar- 
 rangements for a contract had been made, 
 giving the figures of 25,000,000 of acres 
 of land and $25,(X)0,000 and existing rail- 
 ways completed as the general terms of 
 the arrangement. He suggested that 
 there were still some matters of detail to 
 be fixed, and yet those gentlemen who 
 considered that too high a price never 
 placed themselves in communication with 
 the minister on the subject. When the 
 scheme was brought down to Parliament 
 in December, 1880, these men still did not 
 move. When the Christmas recess took 
 place, meetings were held all over the 
 country by Mr. Blake and others, and 
 still there was no suggestion from these 
 gentlemen that they were anxious to con- 
 biruct the railway upon better terms. .^ It 
 ivas only when the meetings showed that 
 pcVfi: "^i -gitation against the contract was 
 r .', •'i-eiy to b3 successful, and after Par- 
 
 ^! 
 
28 
 
 y ] 
 
 liament hail roassemblefl, that they put 
 a tender almost in the preciHo wonls of 
 tho contract already entered into, with 
 the exception that the bulk 
 sums were somewhat !ower. But 
 they took care to intimate in that 
 contract that they were prepared to 
 drop the eastern end of the line and the 
 western end au well, and biuld tue 
 prairie section alone. To have ac- 
 cepted it mast have involved the re- 
 tirement of the Government. Mr. Blake's 
 policy being simply to construct the 
 prairie saction, leaving the ends for futnre 
 time if this company could have got the 
 contract for this vjiluabln partof the road 
 at subsidies which woro lor this section 
 standing alone, very high, they would 
 have been lowar I mI for tho part they had 
 played in defeating the ConHervative ad- 
 ministt ition. No CJovernment respecting 
 itself coukl have set aside a contract 
 made under the circumstances, and no 
 Parliament which had the interest of the 
 country at heart would, in view of the 
 great difficulties which all parties admit 
 existed in getting a company to 
 build the railway, have cast mide 
 an a<lvantageou3 arrangement mnde 
 not only with Canadian capital- 
 ists, l)ut with important European 
 financial houses as well, because a num- 
 ber of politicians anxious to defeat the 
 Government chose to make an offer 
 which all the circumstances sliow they 
 never intended or proposed in anyway to 
 fulfil. Upon no ground has the Govern- 
 ment of ihe day a greater claim to the 
 confidence of tho country than in the 
 fact that they have secured the construc- 
 tion of tho Canadian Pacilic Railway on 
 terms so favorable as those embodied in 
 the present contract. 
 
 THE BOUNDARY QUESTION. 
 
 A question upon which it is said in 
 On*/urio a chief battle is to be fought is 
 the refusal of the Government to confirm 
 by act of Parliament the award of certain 
 arbitrators on the subject of the bound- 
 ary between Ontario and tlie Northwest. 
 A great deal of indignation lias !)een ex- 
 pended by the Opposition upon this ques- 
 
 tion, and tho Provincial Government it 
 (Jntario being in league with the ( Jpposi 
 tion at ' )ttawa has joined in the fray, not- 
 withstanding that the dililculties con- 
 nected with the question to-day are en- 
 tirely due to their own opgleot, and to 
 tho neglect rf their friends of the Mac- 
 kenzie Administration. A single history of 
 thi (^ase is tho best way of <lealing with it. 
 By a return brought i own during tlie re- 
 cent session, it appears that on 17th July, 
 1H7I, Governor llowland wrote to the 
 Secretary of State pointing out the im- 
 portance of the ap[)ointmont of a com- 
 mission to determine " the true boundary 
 " or division lino separating the Province 
 "of(Jntario from what is known as the 
 " Norfchwest Territory." On tlie I'Sth 
 July the Government at Ottawa consent- 
 ed to the appointment of a commissioner 
 and named Mr. Tache, of the city of Que- 
 bec for the purpose. (Jn the 2l8t Sep- 
 tember Governor I lowland replied naming 
 the Hon. vVm. McDougall aa tho commis- 
 cioner for the Province of Ontario. On 
 the 0th .lanuary, 1872, the Government 
 of Ontario having in the meantime been 
 changed and Mr. Blake being in posses- 
 sion, a letter was addressed by Governor 
 
 llowland urging the importance of tb« 
 draft of instructions being at once trans- 
 mitted to the Government of the Prov- 
 ince of Ontario for their consideration ; 
 and on 11th March, 1882, that draft was 
 prepared and sent. On the 25th March 
 a minute of council of the Government of 
 Ontario was transmitted, in which it is 
 said " the committee advise that the Gov- 
 " ernment of Canada be informed that the 
 " Province of Ontario claims the bound- 
 " ary line is very different from the one 
 " defined by the said instiuctions and 
 " cannot consent to the prosecution of 
 " the commission for the purpose of marft- 
 " ing on tho ground the line so de- 
 " fined, and that the commissioner 
 " ajipointed by the Government of 
 " Ontario should be instructed to 
 " abstain from taking any further 
 " action under his commission." 1 1 will thus 
 be seen that the first dithoultyin the way 
 was made by Mr. Blake's Government in 
 1872. On the 9th of April a report of the 
 committee of the Privy Council was adopt- 
 ed, in which, alter reciting the facts up 
 
# 
 
 24 
 
 . I 
 
 ■ s 
 
 to that time, the cniumittee say :— " The 
 « comiiiittee of the Privy Couccil regret 
 " that the Government of Ontario, while 
 I expressing their difierence of opinion 
 ' from that of the Dominion, omitted to 
 I' give their own views on the subject : 
 '• and they did not state what their claim 
 " as to the location of the boundary line 
 "was." And then, after pomting out 
 fcow important it was to have the boun- 
 dary fixed, the report concluded as fol- 
 lows :_" Should it be found, after an in- 
 "terchange of opinions, that the two 
 " Governments cannot agree as to 
 " the location of the line, the 
 ''committee do not dou^t that 
 • both Governments will feel it their 
 •' duty to settle without delay upon some 
 "proper mode of determining, in an au- 
 •• thoritative manner, the true position of 
 " duch boundary," In answer to this, on 
 the 19th of April an Order-in-Council of 
 the Ontario Government '.vas passed de- 
 fining their view as to what the boundary 
 Bhould really be, and suggesting that m 
 the event rf the Government of Canada 
 not concurring in their view, they would 
 be prepared " to consider any proposal 
 which may be made by that Government 
 J for the establishment of a conventional 
 " lunit to the north of that watershed "— 
 the watershed of the St. Lawrence sys- 
 tem. On the 1st of May the Minister of 
 Justice prepared an order which con- 
 tained the following : 
 
 "Having reference to the prospect of a 
 large influx of people into the Northwest 
 Territories, it is very material that crime 
 Bhould not go unpunished or unprevented, 
 and in this view the undersigned has the 
 honor to suggest that the Government of 
 Ontario be invited to concur in a statement 
 of the case for immediate reference to the 
 Judicial Committee of the Privy Council of 
 England, with a view to the settlement, by 
 Bjudgmeut or decision of that tribunal, of 
 the western and northern boundaries of On- 
 tario. 
 
 " This is tlie more necessary as no con- 
 ventional arrangement between the two 
 Governments, as to boundary, can confer 
 crimind jurisdiction on the Courts of On- 
 tario, unless the place where any crime may 
 be committed is, by law, within the Pro- 
 vince. 
 
 " The undersigned has the honor, also, to 
 
 call attention to the fact timt tho min^rat! 
 wealth of the Northwest country is likely to- 
 attract a large immigration into those parts, 
 and, with a view to its development, as well 
 as to prevent the confusion and strife that is. 
 certain to arise and continue aiuong the 
 miners and other settlers so long as the im. 
 certainty as to boundary exists, the under- 
 signed begs leave to recommend that the 
 Government of Ontario be urged to arrange 
 with that of the Dominion for some joint 
 courje of af^tion as to the granting of land 
 and of raining licensee, reservation of royaU 
 ties, &c., and for this purpose he would sug. 
 gest that the Government of Ontario b* 
 moved to appoint a Commissioner to meet 
 the Hon. J. C. Aikins, and arrange some joint 
 system; and that any such arrangement, 
 when ratified by the two Governments, shall 
 be hold to bind both, and shall t)e subject to 
 the decision of the Judicial Committee of the 
 Piivy Council upon the question of the , 
 boundary; and that after such decision, titles 
 to lands or mining rights shall be confirmed 
 by the Government, whether of Canada or of 
 Ontario, as shall, under the decision of the 
 Judicial Committee, be the proper party to. 
 legalize the same." 
 
 In answer to this, on 31st May a minute 
 of Council of the Ontario Governmont waa 
 sent, in which the following was made as 
 
 a counter suggestion : '. 
 
 "With reference to the proposed submis-' 
 sion to the Judicial Committee of tho Privy 
 Council, this Committee begs to observe that 
 the solution of tho boundary question de- 
 pends upon numerous facts, the evidence as : 
 to many of which is procurable only in 
 America, and the coKection of which would 
 involve tho expenditure of much time ; and 
 upon the whole tho Committee is of opinion . 
 that tlie more satis-factory way of settling the 
 question, should the Government of Canada 
 still decline to negotiate for a conventional 
 boundary, would be by reference to a com 
 mission sitting on this side of the Atlantic, 
 and the Committee recommends that, with- 
 out for the present dealing definitely with 
 the proposal of tiie Government of Canada 
 tor a reference to the Judicial Committee, 
 this counter-suggestion should be made to 
 that Government." 
 
 Then again, in reply to tliis, by a 
 minute of Council of November 7th, 1872, 
 (soiue corresi)ondence having taken place 
 in the meantime) the Government at Ot- 
 tawa thus reiterated its preference lor aa 
 
 I 
 
<» 
 
 26 
 
 > < 
 
 Wthoritative decision by the Judicial 
 
 Committee of the Privy Council : 
 
 « The committee are of opinion that the 
 evidence upon which the decision of the 
 boundaries in question would depend, is 
 •chiefly, if not altogether, of a documentary 
 character, and would be found rather in the 
 Imperial Archives than in America, and that 
 any which exists here might readily be sup- 
 plied, whilst an authoritative decision by 
 the Judicial Committee of the Privy Coun- 
 cil would be final, and command that 
 
 Seneral assent which is so important in en- 
 eavouriug to adjust questions of an inter- 
 provincial character. 
 
 ,{' There are objections, also, to this pro- 
 posal as regards the mode of conferring legal 
 powers upon such a commission, which it 
 Would be found very difiicult, if not impos- 
 Bible to deal with, and the comn#ttee doubt 
 whether any other tribunal than that of the 
 Queen in Council would be satisfactory to 
 the other Provinces of the Dominion in the 
 decision ot questions in which they have a 
 large interest, the importance of which is, by 
 current evtitits, being constantly and rapidly 
 augmented, and they respectfully recommend 
 Uiat the proposition for a reference to Her 
 Majesty in Council be renewed to the Gov- 
 ernment of Ontario." 
 
 Some further correspondence ensued 
 Of an unimportant character, when, on 
 December 5th, ]873, after a change of 
 Government had taken p'ace, tlif Ontario 
 Government wrote to ask that .ue Secre- 
 tary of State for Canada would " be good 
 " enough to obtain, through the Colonial 
 "^ Office, for the use of my Government, 
 '•' tracings of the maps used by the Eng- 
 " lish and French ]>lenipotentiaries in 1713 
 " and 1 703, and of those sent at diiferent 
 "times by tlieUudson'sBayCompany to the 
 " Lords of Trades and I'imitations, co})ies 
 ^of all correspondence between the Gov- 
 ernments of England and France upon 
 " the subject, and also copy of the in- 
 '' structions given to the English Com- 
 " missioneis appointed un<lor both the 
 " Treaty of Eyswick and the IVoaty of 
 *' Utreclit, togetlior with any rei)orts which 
 <* they may have made.'" In view of tlie fact 
 that the Government of Ontario iiad just 
 refused to refer tliis question to the Judi- 
 cial Committee of the Privy Council, upon 
 
 t.ll( 
 
 'luu tjiat tlie evitlenccupuu wiiicli 
 it should be decided was to be found on 
 
 this side of the Atlantic, this request waa 
 certainly sufficier uly extraordinary, and it 
 appears the more extraordinary when the 
 answer of Lord Kimberley is looked at. He 
 said that from a preliminary examination 
 itai)peared that between 1713 and 1763 
 Miere were no fewer than 105 volumes of 
 correspondence with France alone, three 
 volumes relating to the Treaty of Ryswick 
 and 37 volumes of instr actions with refer- 
 ence to the Treaty of Utrecht, Of maps 
 there appeared to be about 50 relating to 
 Canada, besides various volumes of charts, 
 &c. Lord Kimberley pointed out that 
 " although the authorities of the Record 
 "Office are desirous of giving every as- 
 " sistance in their power in obtaining the 
 " requisite mformation, they are unable 
 '• to undertake such an exhaustive 
 " search as the examination of ud the do- 
 " cuments would involve," under which 
 circumstances he suggested " that some 
 " gentleman should be appointed by the 
 •' Canadian Government to make the 
 ''necessary search and to decide what 
 " documents it may be desirable to copy." 
 Surely, under these circumstances, the 
 ground upon which a refusal to submit 
 this question to the judicial committee.«f 
 the Privy Council, that the evidence was 
 chiefly on this side of the Atlantic, musi; 
 appear to be a very foolish one. Nothing 
 further was done in the way of securing a 
 settlement of this question until 12ti? 
 November, 1874, more t..an a year after 
 ^'ix. Mackenzie came into office, when a 
 minute of council was adopted concur- 
 ring <* in the i>roposition of the Govern- 
 " ment of Ontario to determine, by means 
 " of a reference, the norther i and Avestern 
 '' boundaries of that [irovince, relative to- 
 " the rest of the Dominion ;" and in 
 this minute Mr. Mackenzie " furtlier re- 
 " commends that the Dominion agree 
 " to concurrent action with the Province 
 " of Ontario in obtaining such Jegi.dation 
 " lis may be necessary for giving binding 
 '•' ellect to tlie conclusions ;■ ived at, and 
 " for establishing the northern and west- 
 " ern limits of the Province of Ontario in 
 " accordance therewith." That minute 
 was passed on 12th November, 1 874. 
 The arbitrators aiipoiated under it ap- 
 jiear to have done nothing. Subsequent- 
 ly other arbitrators were appointed, and 
 
26 
 
 in 1878 the award that is now the matter 
 Of dispute was made. 
 
 "What, however, is remarKable is that, 
 although in November, 1874, Mr. Macken- 
 eie recommended that concurrent action 
 Should be taken with the On- 
 tario Legislature in obtaining legis- 
 lation for the purpose of giving 
 binding effect to tlie conclusions to be 
 arrived at by the arbitrators, no sucii ac- 
 tion was taken by the Parliament of 
 Canada, no act of Parliament liaving been 
 passed. The Ontario Oovernment did 
 pass an act, but they put a clause in it 
 bringing it into effect only upon tiie pro- 
 clamation of the Lieutenant-Govenior-in- 
 Council. 'Ihat proclamation never was 
 Issued, .90 that both the Liberal Govern- 
 inent at Ottawa and Mr. Mowafs Govern- 
 ffitnt in Ontario neglected to take the 
 necessary steps to give binding eject to the 
 Uward of their own arbitrators. 
 
 Much has been said about the unfair- 
 ness of not accepting an award of arbi- 
 trator made by parties to a dispute ; but 
 it may fairly be suggested that no 
 one is ever bound by an arbitration 
 Unless regular articles of agreement are 
 drawn up before the arbitrators b',^gin 
 their work, agreeing to abide by their de- 
 cision. In this case it could only be by 
 acts of the Parliament of Canada and of 
 the Legislature of Ontario that a proper 
 submission could be made, and a binding 
 award given; and if to-day there is any 
 dispute on the subject, it is due to the 
 fact that Mr. Mackenzie and Mr. Mowat 
 both neglected to do what the former 
 in his minute of Council of the 12th 
 November, 1 874, declared to be necessary 
 in order to give effect to the award that 
 Was to be made. (;)n .Sl.st December, 
 1878, Mr. Hardy, the Provincial Secre- 
 tary, wrote to the Government at 
 Ottewa asking that an act might be 
 passed to confirm the award. In tiiis let- 
 ter he says : — " The Act, I presume, may 
 " be in substance the same as K. 8. 0. (Re- 
 " vised Statutes of Ontario), cap. iv, with 
 " the variations necessary in consequence 
 '• of the award having now been made. 
 " Ko proclamation teas issued as had been 
 " contemplated when the Act was passed." 
 Why was this jn'ocl.nmation not issued.? 
 Why did these Liberals who are now so 
 
 excited on the subject of this award not 
 adopt the necessary measures to give it 
 effect ? The answer to this question is to 
 be found in the Globe newspaper of 
 February 14th as follows: — "Had 
 '" there beeft any ground whatever 
 " for suspecting that the award was 
 " in the slightest degree too favorable to 
 " Ontario, tlie Dominion Governmentmight 
 " have been justified in failing or rejusing 
 " to be bovnd by it. Mr. Mackenzie, toith 
 " hisvsnal caution, reserved the right to do 
 " so for cause;" so that it actually turns 
 out that the neglect to .pass the neces- 
 sary legislation by . Ir. Mackenzie was 
 with the expiess object that he did not 
 desire to be bound by the award of the 
 arbitratois ; and we presume the same 
 reason dic^ted the neglect of the Ontario 
 Legislature to issue the required procla- 
 mation. Under these circumstances it 
 ceitainly cannot be urged that the award 
 should be sanctioned simply because the 
 arbitrators chose to make it. 
 
 It should be remembered that this 
 award is not in any way in accordance 
 with the submission. The arbitrators 
 were appointed for the purpose of deter- 
 mining the trite boundary of Ontario. 
 Thpy certainly did not give (Jntario what 
 was claimed by that Province. Mr. Mills, 
 for instance, in his work upon the subject, 
 declared that "the limit of the Pro- 
 " vince of Ontario then formed the Inter- 
 " national boundary upon the south, 
 " westward to the Rocky Mountains ; the 
 " Rocky Mountains from the international 
 " boundary northward to the northwest- 
 '' erly sources of the Saskatchewan ; the 
 " northern watershed of the Saskatche- 
 " wan eastward until it intersects 
 " the boundary lire midway between 
 " Lake Winnipeg and Port Nelson at the 
 " mouth of the Nelson River ; and upon 
 " the north-east the line already indicated 
 " thereon, midway between the post held 
 " by England and France just before Can- 
 " ada was ceded to Great Britain ;" and 
 Mr. Thomas Hodgins, who acted as one of 
 the council for Untario before the arbi- 
 trators, claims that the province covered 
 the whole of the north and northwest ter- 
 ritories from the confines of iludson's 
 Bav to the Rockv Mount'iins. iirHnrin" the. 
 claims of the Hudson's Bay Company in , 
 
1 
 
 creat part. Even by the act of the Legis- 
 lature of Ontario sanctioning the award 
 it is admitted that Ontario did 
 not get what she was entitled 
 to, one of the clauses in the preamble, to 
 that act being to this eiS'ect:—" And 
 " wherms the effect of the awardis to give 
 " to this province less territory than hqid 
 *'been claimed on behalf of the province." 
 The arbitrators, therefore, certainly did 
 not give to Ontario what those who were 
 specially on her behalf entrusted with the 
 investigation of the subject claimed she 
 was entitled to. The arbitrators them- 
 selves do not pretend that Vhey found 
 the true boundary. Sir Francis Hincks 
 has written a good deal upon this subject, 
 and his statements are emphatic upon 
 this point. He says : " What the arbitra- 
 " tors made,up their minds to was as to 
 " the soufeh-western and north-eastern 
 " boundaries ;" and then he goes on to 
 Bay : — " They further made up their 
 "minds that there were no data what- 
 " ever for declaring any particular place 
 " in the Northwest as the north-westerly 
 " boundary." Again he says : — " There is 
 " no establishecj north-western boundary, 
 '' and no one has ever pretended that 
 " there is." Tie points out that they 
 found a boun<lary round two sides of the 
 area of the province. On the other two 
 aides, the west and the north, they found 
 none, and no data whatever therefor. 
 Hence they made one to suit their own 
 views of what they thought fair — a pro- 
 ceeding certainly beyond their province. 
 Mr. Dawson, in a recer t letter addressed to 
 the Globe, thus quotes the language of Sir 
 Francis llincks as showing that no bound- 
 ary exist .id, and that they did not pre- 
 tend to have found a true boundary : — 
 " (I) That the boundaries ' of Upper 
 Canada v/ere so vague on the north and 
 north-west that it is simply impossible to 
 find any line positively laid down by au- 
 thority. ' (2) ' 1 have always admitted that, 
 while the arbitrators detei'mined all the 
 
 f Joints in dispute and found true and 
 egal boundaries, on the west and north- 
 east, tliey had no data to guide them as 
 to tiie mode of connecting the points 
 established'— that is, that for two sides 
 of the Province they had no data what- 
 ever. (3.) ' My object was simply to 
 
 prove that no precise boundaries wert 
 laid down, and that the arbitra- 
 tors were compelled to determine 
 then between certain established points 
 in Mie manner most advantageous to the 
 contending parties ;' that is, to make a 
 boundary which they thought a good one 
 for two sides of the province. (4.) * The 
 arbitrators determined, as they thought 
 they had a right to do, the boundaries on 
 the north and northwest. I have suffi- 
 ciently explained the impossibility of find- 
 ing true boundaries where there are no 
 data whatever.' And so out of his own 
 mouth he is condemned — they 'deter- 
 muiod ' boundaries for one-half or two 
 sides of a square of the province for which 
 they had ' no data whatever.' " 
 
 From these facts it appears : — 
 
 (1.) In 1871 Sir John Macdonald pro- 
 posed to have the question settled 
 and suggested the appointment of com- 
 missioners with that object. This was 
 at first agreed to by the Ontario Gov- 
 ernment 5 but immediately afterwards, 
 when the basis of the arrangement was 
 submitted by Sir John, that Government 
 curtly declined to acquiesce and with- 
 drew its commissioner. 
 
 (2). Sir John Macdonald, in the year 
 1872, proposed to have the question 
 settled at once by an a]>peal to the Privy 
 Council. This, Mr. Blaise's Government 
 in Ontario refused, upon the ground that 
 the evidence was to be found chiefly on 
 this side of the Atlantic, although they 
 subsequently asked for a documentary 
 evidence from England of so serious a 
 character as to its bulk and extent, that 
 the Imperial authorities were compelled 
 to refuse it. 
 
 (3.) In ] 874, Mr. Mackenzie, after be- 
 ing a year in office agreed to an arbitra- 
 tion, and suggested that the Dominion 
 Parliament and the Provincial Legisla- 
 ture should pass acts to render valid the 
 appointment of arbitrators and any award 
 they might make. He, however, neglec- 
 ted to pass the Act, and Mr. Mowat, while 
 concurring with him as to the importancf^ 
 of such an Act, passed one to be brought 
 into effect by proclamation of the Gov- 
 ernor-in-Council, which proclamation was 
 never issued ! Tb.e absence, therefore, of 
 authority for the arbitrators was due to 
 
28 
 
 the neglect of Mr. Macke^izie at 
 Ottawa, and Mr. Mowat in Toronto. The 
 W^bitrators who finally ac^udicatecl on the 
 subject were not appointed until 1878, 
 yearly five years after the Liberals were in 
 office at Ottawa. Their awai'd was made 
 on the 3rd August, 1878, but it was an 
 award beyr id their province, inasmuch 
 ^s it did not fix Kxe true boundaries j but 
 assuming that no true boundary existed, 
 fixed a conventional boundary. 
 
 (4.) Mr. Mackenzie and Mr. Mowat 
 both neglected to take the necessary pro- 
 ceedings, the one by not passing an act 
 of Parliament,, and the other by not issu- 
 ing a proclamation bringing the act of the 
 Legislature into effept, with the express 
 object that they might be in a 
 position to repudiate the award if it did 
 not suit them. They were not therefore 
 in a position to complain that the award 
 is not Kanctioned. When Parliament met 
 in 1880 a committee was appointed to 
 consider the whole question, which com- 
 mitifee reported adversely? to tiie award. 
 
 (5.) Under these circumstances the 
 Parliament of Canada reverted to the 
 original proposition of Sir John Macdon- 
 ald for a reference of the case to the 
 Privy Council, the policy of the Govern- 
 m^ent being defined in a resolution moved 
 by Mr. Plumb to the foUowmg effect : — 
 
 "That in the opinion of this House it is 
 expedient that the western and northern 
 boundaries of the proviDce ot Ontario should 
 be finally settled l>y a referenca to, and aa 
 authoritative decision, by cither the Supreme 
 Court of Canada, or the Judicial Comruittee 
 of the Privy Council in Great Britain, or by 
 the Supreme Court in tlie first place, subject 
 to a final submission to tlie Judicial Com- 
 mittee as the province of Ontario may choose, 
 that such decision should bo obtainud,'!ither 
 on appeal in a trieuuly action brmifhtfir 
 the purpose, or by referenco to the Paid Cour s, 
 or either, or both of them by Her Majesty 
 under the powers conferred upon her by the 
 Imperial and Canadiaii ParliamentH, as the 
 Government of Ontario may prefer, and that 
 the said reference should bo based on the 
 evidence collected and printed with any ad- 
 ditional documentary evidence — if such there 
 is and that pending the reference, the ad- 
 E"' listration of the lands shall be entrusted 
 to a Joint Ci mmission appointed by the 
 Governments of Canada ai*d Ontario." 
 
 (6). If this policy had been adopted 
 when Sir John Macdonald suggested it in 
 1872, the boundaries would have been au- 
 thoritatively settled long ago ; and that 
 Mr. Mowat has no objection except a 
 party objection to a reference to the Privy 
 Cpuiioil, is proved by the fact that he 
 Vodk a vote of $10,000 in the Legislature 
 to pay the expenses of the reference to 
 England. 
 
 This is the position of the bound- 
 ary question, and from it, it will 
 be seen that if the matter has not 
 been settled long ago it is due to the 
 Liberals and not to the Conservatives, and 
 that there is on the part of the latter not 
 only no intention of takin^j from Ontario 
 one foot of the territory properly belong- 
 ing to her, but on the contrary there is a 
 determination to obtain from a compe- 
 tent authority a decision on the question 
 as to the true boundaries, so that Ontario 
 may have every foot of ground that right- 
 fully belongs to her. During the debate 
 which occurred in Parliament Mr. 
 Laurier strongly suppoi'ted the award, 
 and opposed the suggestion of a refer- 
 ence to the Privy Council. It is worth 
 while quoting his language to show the 
 grounds upon which he based his action : 
 
 "NOW LET US SUPPOSE THAT THE 
 QUESTION IS OPENED ANEW. THE 
 AWARD MAY BE SET ASIDE, AND IT 
 MAY BE THAT ONTARIO WILL BE IN- 
 CREASED TO THE EXTENT CLAIMED 
 ASA-RIGHT BY TH"! DOMINION GOV- 
 ERNMENT ; OR IT MAY BE THAT THE 
 TERRITORY OF ONTARIO WILL BE IN- 
 CREASED TO THE EXTENT CLAIMED 
 BY ONTAMO AND GRANTED BY SIR 
 GEORGE CARTIEU, VIZ , TO RED RIVER, 
 AND 'I'HEN YOU WILL HAVE THE PRO- 
 VINCE OF ONTARIO MADE GREATER 
 THAN IT IS BY THE AWARD.'' 
 
 "When so able a lawyer as Mr. Laurier is 
 compelled tlius to admit that the award 
 is liable to be chnnged if referred to a 
 competent judicial tribunal, its worthless- 
 ness may fairly be assumed ; and when he 
 points out that there is great danger that 
 Ontario will get a much larger share of 
 territory by that judicial decision, (ho 
 absurdity oi' raising an Ontario cry against 
 the Government for not sanctioning the 
 present award, is sufficiently apparent. 
 
 * ■ v' 
 
2d8 
 
 IMPORTS AND EXPOETS. 
 
 For three years aft^r Confederation the 
 eqiiilibrUim betweeriihe exports an/Mm- 
 ports of the Dominion was moderately' 
 well preserved, but the large expenditure 
 by the Government, in the prosecbtion 
 of 'public works, and the general prosper- 
 ity cjf all branches of imhlstry stimulated 
 importations to such an extent that in 
 1874 'they exceeded in value the exports 
 by thirty-nine million dollars, and in 1875 
 by forty-tive million dollars. Tlie revul- 
 sion which followed was largely ca'rtsed 
 by the expanded and inflated credit 
 which this excessive i-mi)Ortation pro- 
 duced, and so sudden was the contraction 
 that in 1.S76 the value of imijorts into Ca- 
 nada decrensed thirty million dollars. In 
 1879 the trade of the Dominion was less 
 than in any year since 1870, aggregating 
 only $151,832,863. while in 1873 it had 
 reached $217,801,203, but in 1880 an up- 
 ward course was entered upon and in 
 that year our trade expamfed to $174,- 
 401,205. The year 1880-1 brought 
 about a remarkable recuperation of the 
 foreign commerce of the Dominion, the 
 aggregate trade reaching the large amoimt 
 of $203,021,663, or within about fourteen 
 millions of the largest total previously re- 
 corded. The wonderful vitality infused 
 into the commerce of the country since 
 1878-9 needs no more forcible illustration 
 than is given in these figures. In the 
 brief period of two years the value of our 
 foreign commerce has expanded $50,000,- 
 000. Of the total increase last year as 
 comi^ared with 1878, $10,379,365 was in 
 exports, and $18,841,093 in imports, while 
 the quantity taken for consumption in- 
 creased $! 9,829,255. 
 
 The total value, of imports, exports and 
 goods entered for consumption in the 
 past three years was as follows : — 
 
 For con- 
 
 Fxports. 
 
 3870.. $7l,491,L'55 
 
 188i) 87.911,453 
 
 1881 !)8,2')ISS23 
 
 Imports. 
 S81,9W,427 
 8fJ,-189,7i7 
 105,380,810 
 
 Rumption. 
 
 $80,:i-ll,6iW 
 7 1,782.3 it) 
 91,611,601 
 
 Total.... $257,693,586 $273.7 5,014 .S2«,7;i"),.'56I 
 
 Since 1878, therefore, notwithstanding 
 the great increase in oar trade, the ba- 
 lance of trade has not been against the 
 country, for while the lm'oss imports ex- 
 ceed in value the exports by $10,091,478, 
 
 the exports have exceeded the value qi 
 the goods taken for consumption by , 
 
 $13,975,975. *; 
 
 , ., ?'RADE WITH OK£i.\,T BPITAIN. ,'f''j 
 
 But, not only has the trade of the cou^ii^,. 
 try increased rapicUy under the operation. . 
 of the ,National Policy, but the increase ' 
 has be§n wholly in the,dirQction aimed at'! 
 by that policy. .X^ke for instance, ith© ' 
 tijad<3 of Canada ^vi^h the United States 
 and (ireat Britain. From, 1875 to 1879 
 our exchfmges with the mother couatry., 
 continuously and rapidly decreased, wliile 
 those with thp United States, in spite of 
 the heavy fall in, prices, were compara- 
 tively little reduced in value. Thui^i'! 
 while in 1875 we traded to the amount , 
 of $100,379,909 with Great \Brij, 
 tain, in (1879 we dealt in only 
 $07,288,848 worth of goods wjtU 
 that country, although in the same 
 period our trade from the United 
 States was subjected to a shrinkage of 
 less than ten million dollars, or from 
 $80,717,803 to $70,904,720. It will be re- 
 membered that when the National Policy ' 
 Was introduced it was assailed as an anti- 
 British one, designed to injure and re- 
 duce our dealings with the Mother Coun-' 
 try, and even to this day the Liberals are 
 vainly endeavoring to substantiate this, 
 accusation. Yet the returns prove be- 
 yond question that the direct and imme- 
 diate effect of the change in the fiscal 
 policy has been to promote the inter- 
 change of trade with Great Britain to the 
 prejudice of our neighbors to the south, 
 ilere are the figures of the import and ex- 
 port trade which elucidate this point; 
 
 Great Britain, 
 
 1^75 .^100,379,760 
 
 1879...; ■ 67,288,84* 
 
 18S0 80,807,V83 
 
 18SI. 97,33.5.878 
 
 . No one can examine such a statement 
 as that without being convinced that 
 the National Policy, if it has done nothing 
 e^^p, has, at least, promoted closer trade 
 1' .jations between Canada and Great 
 Britain. Rere is another table which 
 illustrates in detail our business withthe 
 Unit(id States and Great Britain : — 
 
 Uultci States. 
 
 $8ft,71V,803 
 
 70 9i 14,720 
 
 62,696,8,57 
 
 73,570,18; 
 
 '. 'Gfre.'rt Britain 
 
 ■(^': Imports Exports 
 
 1 877 . . . ' . . ■■59,572,239 4 1 ,567, 469 
 iSTiJ. .... Ml 90!5,n50 ■%,295,7i3 
 1881 43,583,808 53,751 .570 
 
 United States 
 Imports Exports 
 
 S $ 
 
 51,312,609 25,775,255 
 43.7."0,i;i9 *Zt l6j,i>til, i 
 36.704,112 36,Kiii,225 
 
80 
 
 Contrasting 1887 with 1881, therefore, 
 we imported more goods from Great Bri- 
 tain last year by 14,000,000, while we 
 bought $14,600,000 less from the United 
 States. The advantages of an import 
 trade with Great Britain and foreign coun- 
 tries, as compared with the United States, 
 are many. The warehouse from which 
 the distribution of the goods is made is 
 placed in Montreal and Toronto, instead 
 of New York and Boston ; rates of ocean 
 freight are reduced by the double car- 
 riage and the interchange of commodities 
 rendered more easy and profitable ; a de- 
 mand arises for labor to receive, ware- 
 house and distribute goods j manufac- 
 turers enjoy the protection of the increas- 
 ed cost of carriage from Great Britain and 
 foreign countries, as compared with the 
 neighboring republic, and the opportu- 
 nity to slaughter goods is not so ample, 
 while the task is more difficult. 
 
 OUK FOREIGN TRADE. 
 
 Equally satisfactory has been the trade 
 movement between Canada and the West 
 Indies, China and South America, under 
 the National Policy, as the followiug fig- 
 ures show : — 
 
 IMPORTS. 
 
 1878. 
 
 British West In- 
 dies $ 678,405 
 
 Bpaulsh West la- 
 dles 417,178 
 
 CblDBf and Japan. 38(i,675 
 
 South America. . . 15,447 
 
 1880. 1881. 
 
 $1,208,822 $1,888,695 
 
 1,711,462 1,899,813 
 893,911 1,410,933 
 283,481 637,620 
 
 Total $1,894,706 $4,097,676 $5,837,101 
 
 BXPORTS. 
 
 1878. 1880. 1?81. 
 
 British "West In- 
 dies $1,950,144 $1,906,053 $1,787,813 
 
 Spanish West In- 
 gles 1,089,807 1,319,588 1,167,612 
 
 China and Japan. 102.568 87,546 19,761 
 
 South America. . . 654,357 789,940 732,111 
 
 Total $3,796,876 $4,063,127 $3,707,297 
 
 Our aggregate trade with these countries 
 in the three years was, therefore, as fol- 
 lows :— 1878, $5,191,582 ; 1880, $8,150,803; 
 1881, $9,544,398, showing a marvellous 
 growth under the influence of the Na- 
 tional Policy, which was destined to di- 
 rectly enlarge our trade with these sugar 
 and tea-producing countries. The trade 
 of last year with the West Indies, China, 
 Japan and South America is the largest 
 ever recorded. 
 
 EXPORTS. O 
 
 The growth of the export trade of Can- 
 ada under the National Policy has been 
 truly marvellous, as the following state- 
 ment of the value of exjjorts in 1878 and 
 1881 will show :— 
 
 18T8. 1881. 
 
 Pioduco of mine $ 2,860,363 $ 2,916,254 
 
 fisheries .. 6,929,366 6,898,884 
 
 " forest 20,054,829 25,709,848 
 
 Animals and produce. 14.577,086 22,685,610 
 
 Agricultural products. 27,281.089 31.291,127 
 
 Manufactures 4,715,776 4,013,123 
 
 Miscellaneous 477,603 768,650 
 
 Total $76,905,012 $94,296,496 
 
 Coin and bullion 16^,930 971,006 
 
 Amount short return- 
 ed 2,249,668 3,023,322 
 
 Grand total $79,323,667 $9«,290,82a 
 
 THE EE-DISTEIBUTION BILL 
 
 The interest which is felt in the Re- 
 distribution of Seats Bill is centered main- 
 ly in the Province of Ontario, where the 
 Liberal party is endeavoring to make it a 
 leading issue in the campaign. The com- 
 mon sense of the people of that province 
 teaches that the outcry of the Opposition 
 is made simply because they conceive 
 themselves to be politically hurt by the 
 re-distribution. That measure, however^ 
 deprives not a single elector of his fran- 
 chise ; he will be as potent to determine 
 the party character of the next Govern- 
 ment on June 20th as he ever was. All 
 that has been done is to equalize the 
 population to the representation, and 
 how necessary such a measure had be- 
 come may be judged by the fact that the 
 counties represented by Conservatives in 
 the late Parliament had a population of 
 1,192,783, while the population of the 
 constituencies represented by Liberals 
 was only 461,278, and in the total vote 
 cast in Ontario the Conservatives obtain- 
 ed a ma jority of 1 1 ,000 votes. 
 
 The iiistory of the measure, a statement 
 of the causes which required its intro- 
 duction, of the principle upon which it ia 
 founded, and of the action taken by the 
 Liberals in similar circumstances in the 
 past, will suffice to show how unwarrant- 
 ed is the language in which the bill has 
 been denounced by tliose who conceive 
 themselves to have been politically in- 
 jured by it. The measure is not, as has 
 
 ■ '^ 
 
 T 
 
81 
 
 > ■'•' 
 
 \t 
 
 T 
 
 been charged, an arbitrary one, passed 
 upon the eve of a general election, to 
 strengthen the Government in the Pro- 
 vince, and prevent the free expression of 
 the will of the electors exercising its legiti- 
 mate and proper influence. The redistri- 
 bution of seats in the Province of Ontario 
 was made incumbent upon the Govern- 
 ment by the supreme lav? of the land, and 
 not forced upon Parliament by a Ministry 
 seeking to promote its political existence. 
 By the census of 1881 Ontario became 
 entitled to four additional representa- 
 tives, and in the redivision of constituen- 
 cies thus necessitated it was determined 
 to apply the principle of representation 
 by population to the Province. That 
 principle was a cardinal one of the old 
 Liberal party of Upper Canada ; it has 
 been adopted by the men who usurped 
 the name of that party, and they have 
 never tired of parading their desire to 
 have it applied to the representation, The 
 opportunity having arisen, the Govern- 
 ment determined to adopt the principle 
 in the only Province in which a redistri- 
 bution was called for, and they have eo 
 applied it as to remove the curious dis- 
 crepancies in the representation which 
 previously existed. In the present House 
 of Commons a county having a popula- 
 tion of more than 42,000, Ijambton, has 
 the same representation as one compris- 
 ing a population of less than 3,600, Nia- 
 gara, and inequalities more or less glaring 
 exist in very many cases. Under the 
 new bill these discrepancies have all been 
 swept away, and the average of the popu- 
 lation to the representation in Parliament 
 has been as nearly observed as geograph- 
 ical lines would permit. How strictly the 
 principle of representation by po- 
 pulation has been adhered to, and 
 how much more just and fair will be 
 the basis of representation hereafter, wiil 
 be seen by the following statement of the 
 population of various constituences at 
 present and as changed : — 
 
 Present Future 
 
 population, population. 
 
 Carleton 24698 20,287 
 
 North Lanark 13,943 18,345 
 
 North Victoria 13,799 16,540 
 
 South Ontario > 20,244 
 
 North Ontario > 60,809 20,S23 
 
 West Ontario (new) ) 19,7S0 
 
 Noiiii Brallt 13,^84 17,Go5 
 
 Nortk Perth 34,207 26,276 
 
 East Bruce , 
 
 North Bruce > 64,774 
 
 Wt'st Bruce (new) ) 
 
 West Elgin 14 214 
 
 South Huron 27,103 
 
 Centre Huron 26,474 
 
 Bot h well 27,102 
 
 Kent 36,626 
 
 North Norfolk 17,2i9 
 
 Houth Norfolk 16,374 
 
 North Essex ) .„ _„„ 
 
 South Essex (new) { 40.7BJ 
 
 B ockvlle 12,514 
 
 Mi.skoka 27,204 
 
 Si)ulh Slmcoe ) oa ooi 
 
 ^wth Slmcoe > ?5'55a 
 
 East Simcoe (new) ^4».^!» 
 
 South Wentworth 14,993 
 
 West Lambton (new) 
 East " ....... 
 
 Present Future 
 Dopulatioo. popuIatioOi 
 
 17,655 
 25.618 
 23,480 
 23,043 
 22 321 
 22,26a 
 28,11!} 
 20,869 
 19,019 
 25,65a 
 22,3Sa 
 15,007 
 17,640 
 22,721 
 26 120 
 27,185 
 16,229 
 24,350 
 183) 
 
 I 42,616 
 
 The constituency of Niagara, whiobi 
 with a population of only 3,500, had a re< 
 presentative in the late parliamentj 
 is incorporated with Lincoln, the joint 
 counties having a population of 20,901, 
 and the constituency of Cornwall, with a 
 population of 9,0(X), is joined to Stormont, 
 the population of the two being 23,200. A 
 glance at the table above will show how 
 closely the principle of representation by 
 population has been followed. The aver* 
 age. population to the representation la 
 about 21,000, but it is obviously impossi. 
 ble to exactly adjust the representation 
 to that quota. The geographical position 
 of the counties rendered it impossible to 
 do so, and it was out of the question to 
 undertake to split up municipalities! 
 townships and villages so as to bring 
 about a more exa> i proportion. 
 
 To the principle upon which the redis« 
 tribution is based no objection is or can 
 be ma<le. The whole record of the Liberal 
 party is a testimony to the justice of it, 
 But is it a singular thing that when the 
 law compelled a redistribution of seats, 
 the Government has had some regard to 
 political. consideration? If it is a crime 
 that political advantage accrues to the 
 Conservative party as an incidence and 
 not as a cause of the alteration, how much 
 greater was the offence of the Liberal 
 party in Ontario when, solely for party 
 advantage, the Mowat Government arbi. 
 trarily changed the boundaries of constitU' 
 encies in that province as respected re- 
 presentation in the local Legisla- 
 ture, and the Mackenzie Govern- 
 me»t, with the same design, en» 
 
32 
 
 f .' 
 
 m ' 
 
 t:learore(l to gerrj'mander the constituen- 
 t;ies of North Wellington and South llu- 
 ron, because it wa3 feared that othorwiee 
 they would elect Conservative represen- 
 tatives 1 The effect of the Itedistribution 
 will bo to secure in a largo measure 
 equality of representation in the prov- 
 ince, and to enable the various members 
 to represent more clearly and fully the 
 views of all sections of the province than 
 is now done with the existing inequalities 
 of population. 
 
 OKRUYMANBEUIXO DY THE LIBERALS. 
 
 To prove the hypocrisy of the Oppo- 
 sition attacks upon the aovornment be- 
 cause of the manner in which the redis- 
 tribution has been made it is ne- 
 cessary only to exammo the man- 
 ner in which the Liberal party 
 carved and cut the constituencies when 
 they were in office, to promote their own 
 political fortunes. It was in 1 874, during 
 the last session of the second Legislature 
 ■of.Ontario that Mr. Mowat introduced his 
 measure to readjust the representation 
 of the Province and increase the num- 
 ber of representatives from 82 to 88. 
 He was not required by any statutory en- 
 actment to enlarge the number of mem- 
 bers, but as the Dominion representation 
 had been increased by six, after the cen- 
 sus of 1871, as he was on the eve of a 
 general election, and as the issue of that 
 citation was in doubt, he conceived the 
 scheme of increasing the representation 
 so as to open the door for a gerrymander- 
 ing; of the constituencies in the interest 
 of "his Government. The first distinction 
 between the (.)ntario bill of 1874 and that 
 passed at the late session of Parliament 
 to be noted is that in the former case it 
 was an arbitrary, uncalled for measure, 
 while in the other case the Dominion 
 Government was compelled by the Con- 
 federation Act to readjust the represen- 
 tation so as to give Ontario four additional 
 members. Having determined upon in- 
 creasing the representation, one would 
 suppose that Mr. Mowat would apply the 
 principle of representation by population, 
 a principle for which his party had con- 
 tended for years, and had declared in 
 1872 in the most formal manner in 
 the'" '' Dominion Parliament that it 
 
 ought strictly to bo observed in 
 any readjustment of the representa- 
 tion, 'ihat principle was shame- 
 lessly disregarded by Mr. Mowat, as a few 
 illustrations will suffice to show. The 
 ridini,' of Brockville contained a popula- 
 tion of 10,470; that of Cornwall a popula- 
 tion of 7,114. The former was repre- 
 sented by a Conservative, Mr. . Fitz Sim- 
 mons ; the latter by a Gi-'it, Mr. .Snetzin- 
 ger. And therefore, not to gerrymander 
 a political opponent out of his constitu- 
 ency, oh! no, your high-minded Grit 
 would shrink from such an act, hut in or- 
 der to efjualize the basis of representa- 
 tion the population of Erockvillo was in- 
 creased .to 13,UU()by the addition of Front 
 of Yonge, Kear of Yonge and Escott 
 taken from South Leeds, while Corn- 
 wall was permitted to remain 
 with its population of 7,000. The secret 
 of this peculiar method of applying the 
 principle of representation by population 
 was that the three divisions taken from 
 Leeds had in the previous election given 
 a Grit majority of 228 votes, the object 
 being to swamp the Conservatives in 
 Brockvilfe by this tricky niancruvre. But 
 Cornwall having elected a good supporter 
 of Mr. Mowat was undisturbed, and we 
 have tlie testimony of the Globe itself 
 that political, motive alone prompted the 
 Mowat Government in this matter. Here 
 is the language of the Globe of Lecember 
 ir>th, 18-74':— 
 
 " Cornwall alone is left untouched, in 
 obedience certainly not to any political 
 exigencies, but to the very strongly ex- 
 pressed desire of the surrounding consti 
 tnencies to remain for the present with- 
 out alteration — a desire it was tlie more 
 easy to gratify because ihcre was no 
 reason to suppose a clian(je would be mad9 
 in the political character of the represen' 
 tat ion of the district bi/ awj reasonable 
 scheme of adjustment iliat could be dC' 
 vised" 
 
 And these are the men who profesq 
 their virtuous indignation at the alleged 
 readjustment of the Ontario constituen- 
 cies m the interest of the Conservative 
 party; the men whose chief organ con- 
 fessed that in 1874 Mr. Mowat had not 
 equalized the representation of Cornwall, 
 because there was no reason to suppose 
 
88 
 
 
 r~—- 
 
 * change wonia bo made in the political 
 character of the representation of the dia- 
 triot by any scheme of readjustment that 
 that could be devised. 
 
 That, however, is but a small part of 
 the iniquity perpetrated by Mr. Mowat. 
 In the debate in the EIouso of Commons 
 upon the Redistribution Bill, during the 
 late .Session, Mr. Blaice denounced the 
 bill upon no ground more strongly than 
 that its operation might give a minority 
 in the country a majority in the House. 
 Thus ten Conservative counties having 
 an aggregate majority of say 500 would 
 have ton times the power in the House of 
 one Grit constituency of 500 majority, al- 
 though the popular strength of parties 
 would be exactly equal, and the leader of 
 the Opposition made a strong appeal not 
 to allow this injustice to be done. 
 Mr. Mowat, however, committed this 
 wrong, destroyed the rights of ma- 
 jorities, gave controlling power to a mi- 
 nority, and not a word of protest came 
 from Mr. Blake, the Globe or any lesser 
 light in the Liberal party, and here is the 
 proof:— The twelve counties of North 
 Grey, South Grey, North Wellington, Cen- 
 tre Wellington, Cardwell, East Simcoe, 
 West Peterboro, East Peterboro, North 
 Victoria, East Grey, West Simcoe and 
 South Simcoe, returned a majority of Con- 
 servatives to the Ontario Legislature in 
 1871, and taking the total vote polled in 
 all these constituencies there was a Con- 
 servative majority of GO, the Grits polling 
 13,611 votes, and Lhe Conservatives L'J,G77 
 votes, so tha*- the parliamentary repre- 
 sentation "■-■<' in accordance with the 
 popular MR. MOWAT DE- 
 
 LIBEkATI ' ABOUT TO TJOB 
 
 HIS POLITL. ^ONENTS OF A 
 
 JUST AND I. jJi RESENTATION, 
 
 AND TO THAT ^,.s j HE CARVED OUT 
 THE NEW RIDING OF DUFFERIN, 
 y^HlVED " THE CONSERVATIVES 
 TtlERE SO AS TO GIVE THEM A MA- 
 JORITY OF ABOUT 1,200 IN THE CON- 
 STITUENCY, AND SO GERRYMAN- 
 DERED THE OTHER RIDINGS, THAT 
 UPON THE BASIS OF THE LAST PRE- 
 VIOUS ELECTION, THE GRITS WOULD 
 BE 'ABLE TO CARRY NINE OF THE 
 THIRTEEN SEATS BY MAJORITIES 
 iiANGING FROM 15 TO 350, WHILE 
 
 c 
 
 ?/l?.TS¥?/iY^^'"VES, ALTHOUGH 
 HAVING A MAJORITY uF 06 OF THE 
 GROSS VOTE, WOULD OBTAIN ONLY 
 FOUR SEATS. That was destroying tho 
 rights of the people, forcibly gagging the 
 free expression of their opinions, with a 
 vengeance; but because the Christian 
 politician, Mr. MovVat, committed the 
 outrage in the interest of his party, the 
 virtuous and high-minded Mr. Blake had, 
 not a word of protest to utter. 
 
 One other illustration of the insincer- 
 ity of the present utterances of the 
 Liberals, of their abnegation of prin. 
 ciplo, of their readiness to adopt the 
 most unfair, unjust measures when the 
 power is given them, will suffice. Re- 
 presentation by population has been dear 
 to the Liberal heart_iu Opposition. Thia 
 13 the way in which it was applied by Mr. 
 Mowat— in office :— 
 
 rr.nBfu„o««^ Popnla- Represeu. 
 
 Constituency tlon. tativeg. 
 
 Muskoka 5,000 i 
 
 C'ornwaU 7000 1 
 
 Algoraa 3000 1 
 
 Brockvllle 13,000 1 
 
 Nlngara 9034 1 
 
 Elgin West; 12,000 1 
 
 Stormont 11,000 i 
 
 Total 60,234 Traembera 
 
 That would be a member for every 
 8,500— in places considered "safe for 
 Mowat." Now, let us look on the other 
 side : — 
 
 Constituencies. tion. tlon. 
 
 0"awa 25,000 1 
 
 ^^"*<fo'l 20,000 1 
 
 Carleton 21,000 1 
 
 Total 68,000 Sraeinber- 
 
 That is, an average of 22,000 in three 
 counties of Conservative proclivities. In 
 other words, 60,000 people in Grit con- 
 stituencies were given two and a third 
 times as much power in the Legisla- 
 ture as 66,000 people in the Conserva- 
 tive constituencies. That is the Ljberal 
 notion of representation by popula- 
 tion. We confess that if the bill 
 passed at the late session of Par* 
 li iment was a tithe as iniquitous as that 
 forced through the Ontario Legislature by 
 the Mowat Government in 1874 upon the 
 eye of an election which threatened to be 
 disastrous to them, there would be some 
 reason in the outcry raised by Mr. Blake 
 
84 
 
 ana his followers. But it is not clitKcult i 
 to justify the present meusuro on its own ' 
 mtfiifs, and it is necessury only to ex- j 
 amino tiio Liijenil scheme of I.S74 to dis- j 
 cover the rank Ijypoorisy of the assump- 
 tion of virtuous indignation, respect lor 
 the rij^hls of the people, and regard to 
 the inHuence of majorities, now made by 
 the Liberal party. 
 
 THE FARMERS UNDER THE NATION- 
 AL POLIOY 
 
 No class of people in the country have 
 profited more by the operation of the 
 National Policy than the farmers. Not 
 
 only has the home market been enlarged 
 for all the products of the I'arm, foreign 
 competition reduced, prices improved and 
 new markets obtainetl for the produce the 
 agriculturist has to sell, but the goods 
 \vhich he buys have either not been ap- 
 preciably increased in price or have been 
 materially reducetl. .So that on both 
 hands the farmer linds his condition im- 
 proved by the present fiscal policy. We 
 do not attach much importance to the 
 question whether the goods which the 
 farmer consumes have been somewhat 
 increased in i^rice or otherwise. The 
 only articles ho requires to i)urchabe 
 which are affected by the change in 
 the tarili are clothing and agricultural 
 machinery. As to the former, the 
 evidence Indisputably proves that Cana 
 dian tweeds and woollens of all kinds, 
 and cottons are lower in price to-day 
 than they were in the years preceding 
 1879, while agricultural implements, 
 which, after all, are only purchased at 
 intervals of several years, if at ail en- ; 
 hanced in i)rice, are inappreciably higher, j 
 and certainly the advance in all kinds of { 
 farm produce will far transcend whatever 
 increase may have occurred, assuming 
 such to have been the case, in the cost of 
 farm implements. But, on the other 
 hand, the farmer has been given his tea, 
 coffee and sugar cheaper than they were 
 under the late tariff, and the advantage 
 to him by the reduction in the price of 
 these articles oi daily consumption may 
 fairly be placed against any increment in 
 the price cf implements he purchases at 
 
 long intervals. At the late session of 
 I'urliament a committee was aj)pointed 
 composed of both Liberals and Conserva- 
 tives, and after an exhaustive enquiry 
 into tUo operation of tiio tariif ui)on the 
 agricultural interests they reported that 
 
 "Tho Kreiiter bulk of tho fvla'iico takon 
 hIiowm llmt till' price ofniiumfMCtun'd ^ooiIh la 
 common us'i aniong.st I'iirmorH Is lucioased lo 
 a buroly notlcoai^lotixlunt, au'tllialtti many 
 lines th y uro actually leiiuced In cons., uneucrt 
 of liomu corapbtltlOii and of tho Improvocl 
 fuciiuiij.s for nianut'acturin^ IneldL-nt to the 
 wldur home market ubtalueJ by tho manu- 
 factuiov." 
 
 Tho evidence collected by the a-lia- 
 mentary Committee disposes effectually 
 of the pretension that tho prices of grain 
 have been reduced m comparison with 
 those of tho American market under the 
 National Policy. 'Iho following is a sum- 
 mary showing tiie result of quotations of 
 spring wheat taken on tho same day twice 
 in each month, at Chicago, New York, 
 Toronto and Montreal, for the past four 
 years :— 
 
 1877. 1878. 1880. 1881. 
 
 v^hlciigo $\..2~i ore $1.09J S1.15 
 
 New York l.l.si 1 I5i 1.19i 1.20 
 
 'loronto 1.81 1.1)1 l.is 1.23 
 
 Montreal 1.37i 1.29 1.2D l.sa' 
 
 Instituting a comparison of prices of 
 spring wheat at Toronto with those at 
 Chicago, upon the average of the whole 
 year, it is found, therefore, that 
 while in 1877 Chicago was 61c 
 less than Toronto, and in 1878, 4o 
 less, in 1880 the Toronto price was 
 8^c higher than that of Chicauo, and in 
 i88!, a^c higher. Contrasting Toronto 
 with New York, we find that the former 
 was 14^0 and 14^c in 1877 and 1878 re- 
 spectively less in price per bushel for 
 spring wheat than New York, while in 
 1880 and 1881 Toronto was only l^cand 
 ;j.^c respectively less than Now York. 
 Here is another table which evidences 
 the advance in the value of Canadian 
 wheat, relative to the American market, 
 under the present tariff. It shows the 
 number of times that the price of spring 
 wheat was higher in Chicago and vice 
 versa during the jjast four years :— 
 
 Chicago Toronto 
 
 No. of Average No. of A verago 
 
 times, amount. times. amount. 
 
 Higher. Higher. 
 
 1877..., 3 2ic 17 9ic 
 
 1878.... 14 4 c 9 4 1-Oc 
 
 IS'^BO.... 1 ije 23 13ie 
 
 1881.... 3 3ic 21 10 1-5.J 
 
 A 11 .V 
 
35 
 
 1881. 
 $1.15 
 1.26} 
 1.23} 
 1.82 
 
 rices of 
 
 loso at 
 
 i whole 
 
 , that 
 
 ■s 6io 
 
 ;78, 4o 
 
 ;e was 
 
 and in 
 roronto 
 
 former 
 878 re- 
 hel for 
 'hile in 
 
 J 
 
 
 Taking the average yearly prices of 
 spring wlK'at for the years 1877-1878 ami 
 1880-1881 combined, they are found to be 
 as foUow.s : — 
 
 Chlcugo. Toroiitr». 
 
 1S77-H ISSO-1. 1877-H IHSO-K 
 
 $1 12J !iil.l2} $l.l7i !JH.27J 
 
 This .statement, which is compiled from 
 the Board of Trade returns, proves that 
 while in 1877 and 1878 the average price 
 of spring wheat in Toronto was only 5 
 cents i)er bushel above the Chicago price, 
 in 188Uand 1881 the Toronto i)nco was 
 ?5J cents per bushel above that of Chi- 
 cago. In other words, tlio Canadian 
 larmer has been benctitted by the Na- 
 tional Pcjlioy to tlie extent of lli cents 
 upon every bushel of wheat that ho grows. 
 
 Another important advantage conferred 
 upon our farmers is the enlargement of 
 the home market. 
 
 The following is a comi)arative state- 
 ment of the imports of agricultural pro- 
 ducts into Canada in the free trade and 
 protective periods, compiled from the 
 trade and navigation returns : — 
 
 IMPOUTED NOT FOU CONSOMPTION. 
 
 1H77-1878 1880-1881 
 
 Agricultural products. ..$iO,7oU,'J71 $ il,072,245 
 
 Green iVults . 12.080 10,786 
 
 ADlmiila 213,3;n 05,0:6 
 
 Animals for Improve- 
 ment. 
 
 Produce cf animals 2,682,030 3,027,283 
 
 $13,625,012 $21,181,280 
 ENTERED FOR CONSUSII»TtON. 
 
 1S77-1878. 1880-1881. 
 
 Agricultural products. .$16,591,501 $ 4,247,187 
 
 Greeu fruits 611,110 563,295 
 
 Animals 771,792 560,935 
 
 Antmiils f(jr Iraprove- 
 
 meut 3vl,8l8 307.304 
 
 Produce of aulmuls 2,767,3(^5 2,588,776 
 
 $21,090,628 $ 8,266,197 
 
 These figures, taken from the official 
 returns, show that the imports of agricul- 
 tural products from the United States in 
 the tvro full years in which the National 
 Policy has been in operation have de- 
 creased by the large amount of §112,830,- 
 000, or, in other words, that the home 
 market has been enlarged to that extent, 
 while, on the other hand, the carrying 
 trade of Canada has aagmented in the 
 period under comparison to the value of 
 §10,.'')00,000 in agricultural products from 
 the United States alone. Then there has 
 
 been a very large increased demand in 
 the Canadian market of consumption for 
 farm products of all kinds, through tho 
 operation of the present tarilf, tho Com- 
 mittee reporting that : 
 
 "The homo demand and prices obtained for 
 meat .itull'-i. butter, p ultry und ok««, as well as 
 liiilt "!id otlitr vc^etiibles, las bon d.'nnn- 
 NlrHtiwl by th- evldeiire to bo largely IncreHsed, 
 nsiir. .xult of tho I 'rlirHilaiuliilliiB in nufac- 
 turlnt{|iidu.strl(w,!ifid I'nprovina tlu'coiidltlou 
 ol thmitic iinlciind lab >rln« mini, hn well as 
 by thofx vuslon of Amerloau competition In 
 many of tliuso articles." 
 
 The deyelojimont of agriculture under 
 tlie National Policy has been truly won- 
 derful. Hero is a statement of the value 
 of tlie exports from tho Dominion of 
 agricultural products, and animals and 
 their products, under a free trade and 
 under a revenue tariff : — 
 
 K.XI'OKTS IN TUB KKBE TRADK VEAIIS. 
 
 1874 $34,269,312 
 
 1875 29,958,865 
 
 18Ti) 34,057,319 
 
 18 '7 28,909,993 
 
 18"8 32,028,611 
 
 1879 33,729,068 
 
 B.XPOKTS U.NUKH THE KmiOtlAL POLICY. 
 
 1880 $39 901,905 
 
 1881 42,628,545 
 
 Tlie farmers of Canada were therefore 
 able to sujjply the enlarged home mar- 
 ket, and exported $8,000,000 more of 
 their products last year than in any year 
 under the free trade tariff. More thaa 
 that, the value of imjjorts of agricultural 
 products and animals and their produce 
 from the United States, for consumption 
 in Canada, was $12,SL>y,131 less in 1880 
 and 18S1 than in 1877 and 1878, and to 
 this amount the l\ome demand for farm 
 produce was increased. The account thus 
 stands as follows : — 
 
 Fiirin p' o<iuce exported 1877 and 1878.,«!6l),9.38,6b4 
 Farm produce ex,.orttd 1880 and 1881. '83,530,450 
 
 Gain to the farmers $22,591,848 
 
 Ad'l decrease In imports from United 
 
 States 12,829,131 
 
 Total gain $ !5,420,977 
 
 But it is said by tho opponents of pro- 
 tection that the National Policy has im- 
 poverished the farmer by increasing the 
 price of everything he requires to pur- 
 chase. In contiadiction of thai state- 
 ment, it is sufficient to cite these facts : 
 
1 
 
 36 
 
 That the depoBita in the Uovernment 
 Havincs Bauks liavo increased nioio than 
 $(;,()()( M)(K)Hinco 1H78| that tho aeposits 
 in tho joint Klock banks Imvo incmisi'd 
 in tho KiMii' i)>Miodni()n^ than $20,1 I0U,0()I», 
 almost I'veiv dollar of which has boon 
 hanked by the ianning classes ; that the 
 amount loaned on moitjiages has <lo 
 creased enormously in tho i»ast ttnoo 
 years, and that tho rate of mtercst on 
 iiiorttiiu'i-s lias declined from li to l per 
 cent, in cotisc(iueneo of the h'ssencd de- 
 mand tor money fiom tho agneiiltmal 
 population. 1 1 is said a«ain by tlio J.ibeials 
 tiiat " every item of hia personal, iauuly 
 •' and business expenditure has incrt-ased, 
 <' while hisincomo is actually le^^s than his 
 " average income during tho existence of 
 « the revenues tariff." Now, tho personal, 
 family and busim ss expenditure o the 
 farmer is made for clothing, fuel, ioodaml 
 aLM icultural implements. Wo assert that 
 his clothing has not been increased by one 
 
 cent uiide" the National i'olicy beyon.l 
 the increase that would have occurro.l 
 under tho late tariff. Cotton goods aR« 
 to-day no<learor than they were in i>Si.s, 
 taking into account the increase m the 
 Drice of the raw material, which now, as 
 then, is Iree of duty; woollen goods of 
 Cftua<lian manufacture, and the larm- 
 ers consume no other, are either as 
 cheap, and in some lines cheaper than 
 they were in 1878, while the (luality ot 
 the goods has materially improved ; boots 
 and thoes, hats, kc, have certainly not 
 advanced in price, as anyone may learn 
 from the columns of the Globe ^^■hlch 
 has repeatedly asserted that the 
 National Policy has not assist- 
 ed tlie manufacturers ot these 
 coods because they monopolized 
 the home marketunder tho 1 . i pei; cent. 
 duly. Then as to his fuel. lUe iuel o 
 the'farmer is wood, he burns not a ton o 
 coalm tho year, and it wood has been 
 increased in price, in has been becaase ot 
 the gtowimr scarcity ot that ar icle, a 
 movement Which no tariti can inlluence 
 or ch.H:k, But if the price ot wood has 
 increased since 1878, is that a disadvan- 
 tage to the fanner? It is well knovNm 
 that in the winter months tlie majority ot 
 .1 .■ ,....a... „,.^ n'-pin.,i<^il in cutlimr wooa 
 for the markets aliorded by neighboring 
 
 towns and villages, and it is a <Iu'.'ct and 
 most important a<lvantage to tlit in li the 
 vahioof tho jM-odiict of their labors m tho 
 forest has been enhaiK-cd by an increase 
 in tho i)riceof it. Nor has his fno I been 
 increased in price, except in a manner 
 most benelicial to himself. His grim, 
 <lairy produco and vegetables now com- 
 mand a higlier price, and th.Mcfore 
 it may be argued that such por- 
 tion of these as ho consumes m 
 his own family aro increasteil in cost to 
 him. Will it be pretended by the LUierals 
 that it is a misfortune to tlie farmer to 
 have tho valu'^ of liis produce increased 
 in tho selUngmarket, because he, himself, 
 consumes ontfliundredth part of those 
 jnoducts ? What cares tho farmer 'f tJie 
 one-hundredth portion which ho con- 
 sumes is increase.l in value, provided 
 that the ninety-nine-hundrcidth part 
 which ho has to sell is also in- 
 creased in price? If there is one class 
 which has i)rospered more than another 
 ■linco 1878, it is the farming community. 
 They know it well, of tlicii' own expert 
 ence, and no amount of violent language, 
 rash assertion, and absurd pretensions 
 will cause them to believe that tho Na- 
 tional Policy has not contributed to that 
 prosperity which they have so bountifully 
 enjoyed. 
 
 THE WORKINGMAN UNDEtiTEE NA- 
 TIONAL POLIOT. 
 
 That tho condition of the woi'kingmen 
 of Canada has materially improved under 
 the National Policy is a sell' evident pro- 
 position. Apart from any increase in the 
 rate of wages, and in nearly every bran -h 
 of industry an increase bus b'ion granij I, 
 the earnings of Uio mechanic, operati/o 
 and laborer have been substantially en- 
 larged by the steadier employment of- 
 fered, and the certainty of eiuploymeni 
 at all times. Tho evidence which has 
 been collected hi relation to this subject! 
 is very positive in its conclusions, 'fc'ak 
 for instance tho condition oftlie working- 
 men of Montreal. In the principal fac- 
 tories ot that city there were employe'- 
 ill September, 1S78, r-,;m) persons, and in 
 September. ISSi, in the same factono* 
 
87 
 
 13,048 porsons were emi)loyeil. Tho 
 weekly wiijjca paul to those workiiigiiuMi 
 and vvonuni wore iti I87H $IO,.')-M, und in 
 jN8I,|;'J0,l>:il, and tho uniiiml vvugos f2,- 
 l()H,;}lIm 1878, and fJ,(l'J2,r,lS in ISHI. 
 'I'hoi'O waa, tlioroforo, paid out in tho fiic- 
 toiics of Montreal hist year $2,5^4,-07 
 nioi'o in wages than was jiaid in 1878 
 under tho C'artwright tarilh What in 
 equally important and conelnsivu as to 
 tlio hi-netits conferred by tho present 
 tariff upon tho workingmen, tho aviajije 
 annual earnings in these factories, includ- 
 ing th<> wages paid to women ami 
 girls in tho tohacco and cotton 
 factories were fS'jD.O.'J in 1881, against 
 $;i(M.(J7 in 1 878, or an avera;io increase 
 per head in tho earning of the working 
 l)opulation of $J5. 
 
 The giowth of the industries of Hamil- 
 ton, Out., as reported by tho Domiuion 
 Immigration Agent in that city, wJio by 
 tho way was appointed by tho Mackenzie 
 (jovernment, has been most marked since 
 1878, as will bo seen by tho following 
 digest of tho report : — 
 
 1878. 1881 
 
 Value of Fac- 
 tory BJg's.. 
 Do plaut. . . 
 Do Oodfls 
 Miinul'iu; '(1 
 
 No ol' hiiiuls. 
 
 Average 
 Wiiges...... 
 
 $ 705,200 $ 1.074,100 
 538,100 l,17J,7dO 
 
 3,857,000 
 3,7U8 
 
 7,478,7(X) 
 0,U51 
 
 lucrease. 
 
 $ 3flS9'0 
 «3J,«J0 
 
 3,021,700 
 117 per c 
 
 Pi per c. 
 
 S1.07i 1.17i 
 
 The number of workshops and factories 
 in llaiiiilton in 1881 was 78; in 1878 it 
 was 57, an increase of 37 per cent, in 
 1878 :',o workshops were running full 
 tmic, and 24 short time. In 1881, work- 
 8hoi)s running short time, 1 ; full time, 
 5() ; overtime, 21 ; making 78 in all. 
 
 Tho luuitory Commission reported at 
 the late sission of Parliament some in- 
 teresting fiicts in relation to the DC) new 
 factories established since tho in- 
 troduction of tho National Policy, 
 and visited by the commissioners. 
 These new factories, whose existeni'e 
 is due wholly to the protective tarill, em- 
 ploy 7,212 hands. Tho Commissioners re- 
 ported thiit the percentage of increase in 
 the number of hands employed in factor- 
 ies which were in existence prior to Sep- 
 tember, 1878, is as follows : — In foundries 
 the increase has been 14 i»erceut. ; in 
 fuiiilluro lUctoi'ies, 20 per cent. ; in boot 
 
 and »hoe, increase, 1 1 per cent. ; in glass 
 and pottery works, increase, 2") per centj 
 in organ and piano, increa«e, 28p('rcent.; 
 in wool an<l knitting factories, increase, 
 \'J per cent. ; tobacco and cigars, increase 
 7 per cent. ; clothing factories, increase, 
 1 1 jier cent. ; cotton factories, increase, 
 .'>() per cent, j rope, (lax an<l briisli f ictor- 
 ies, increase, 11 percent. ; manufactuieH 
 of paper, increase, 10 por cent.; miscel- 
 laneous manufactures of wood, increase, 
 10 per cent.; miscellaneous manufac- 
 tures of iron, increase, 1(J per cent,; gen- 
 <'ral miscellaneous manufucturos, 23 per 
 cent. 
 
 A comparison of tho prices of manufac- 
 tiucMl goods between January, I87'J, and 
 tho (late (,f the visit in 1881, shows tho 
 following results : — 
 
 Nunilier ol fa(^torlos wUloh havonochaago 
 
 i u pi ii'u of gooflH 321 
 
 I'jirtnilt'N which havo Iriciensad by 2.> p.c. . 2 
 Kiuilo ICH " " " •■ 2) pc... i 
 KuclnieH •' " " " l.j p.c... 1 
 Kactoiles " " " " 12 I>.c . I 
 Faotones " " " " 10 »><;... IH 
 K.icioilos " " " '■ 74 p.c... 
 F.iotorles " " " " 5 pc. . 
 Kadoiles " " df creased by 25 p o. . . 
 Ftiot rlos " " " " '20 p.c... 
 Fiictorles " " " " 15 p.c... 
 Fnclorles " " " " 10 p.c... 11 
 F.ictorles " " " " 5 p.c. 25 
 Nmnborof fatitorlea from which wo go, uo 
 Information 13 
 
 The increase in most of the factories 
 was staLtMl to bo on account ofan advance 
 in Uio price of their raw material. 
 
 A comparison of tho state of wa.^os be- 
 tween JiUiuary, 1879. and the date of the 
 visit in 1881 shows : — 
 
 Nuinl)or o' f.ciorles whore wages have re- 
 
 miiiiioil tho s.ime 35 
 
 Facn.'iiieH siarttfd since January, 1879, autl 
 
 m.kUe lio clmnge 50 
 
 Factories shjwiug iacroaso ol 35 percent., a 
 
 35 percent.. 2 
 30 percent.. i» 
 25 percent. .21 
 20 percent.. 42 
 17i per cen... 1 
 15 por cent. .61 
 12i per cent. . 5 
 ID perce it M 
 8 per cent. . i 
 5 per cent. .81 
 
 f'actories 
 FuctorieH 
 Faclorlis 
 Factories 
 Factories 
 FMCturies 
 Factories 
 Fa'torles 
 Faotoies 
 Factories 
 
 JSt..te()t wages not ascertained 1 
 
 Fattorios showing decrease : none. 
 
 The Commissioners, although they did 
 not ascertain the numbers, ibund that in 
 some 30 i'actories visited by them and 
 which were in existence previous to tho 
 change of tarilf, the average increase in 
 
38 
 
 the number of hands employed was ] 7 
 per cent., or about one-sixth. Tlio largest 
 increase has been in the cotton factories, 
 whicn now employ nearly one- third more 
 liands than in; 1878, while in glass and 
 pattern factories the increase has been 
 25 per cent., in organ and piano works 
 28 per cent., and in furniture factories 20 
 per cent. In not a single estabhshment 
 of the four liundred and twenty-seven 
 visited was tlie number of employes found 
 to have decreased since 1878. That 
 is certainly a favorable result of the 
 
 opera* on of the 
 ability to arford 
 people at liome. 
 labor market, to 
 
 tariff as respects its 
 employment for our 
 To have given a better 
 
 , ._ have augmented the 
 
 earnings of the workiugmen by increasing 
 the working time of the week, was much 
 to r.ccomplish, but the National Policy 
 has done more for the laborer and me- 
 chanic. It. has' increased his wages. In 35 
 factories the wages paid to-day are 25 per 
 cent, higher than paid in January, 1879, 
 before the change of tariff, fn 71 factories 
 the increase has been J 5 jier cent, in 9,'i 
 factories 10 per cent., in 35 factories 5 
 per cent. Not a single factory is paying 
 less wages to-day thaii it did in the early 
 part of 1879. Such a result as that does 
 more to confirm the advantage of a j)ro- 
 te"tive policy than all the theoretical 
 platitudes in the world. Look at it. The 
 workingman's liotu's of labor increased 
 all round ; nomorehalf and quarter time, 
 with one-half and one-quarter pay, and 
 his wages increased in no fewer than 281 
 different factories. But, say the op- 
 ponents of the present fiscal policy, while 
 the tariflf may have advanced the wages 
 and increased the income of the me- 
 chanic, it has so augmented the prices of 
 the goods he consumes as to render 
 him no better off at the end - of 
 the year. It has simply, they affirm, 
 put a littlo more money into one 
 pocket and taken a little more out of the 
 other. Such a contention as that cannot 
 be supported. There are two cases, and 
 two onljr, in which prices have been 
 advanced since 1879, fi;-st, where an 
 advance in the price of the raw material 
 has occurred in the markets of the world, 
 
 and secondly — this in rare instances 
 
 wheiP tiie tanfl upon articles which can- 
 
 not be pfoduced in the country, such as 
 wines, has, for revenue purposes, been in- 
 creased. What did the Commissioners 
 find ? That 322 of the four liundred odd 
 factories visited have made no change in 
 the price of their manufactured goods 
 since the introduction of the National 
 Policy; that 47 factories have actually 
 decreased tlieir prices, and that in only 
 45 has an increase in the selling price of 
 goods been made, this increase averaging 
 less than 10 per cent., and in most of 
 these factories the increase was stated to 
 have been in consequence of an advance 
 in the price of the raw material. The 
 manufacturer is able to pay better wages 
 to his employes without advancing the 
 cost of his goods to the consumer, simply 
 because he has a larger market, and can 
 therefore not only produce relatively 
 more cheaply, but can afford to accept a 
 lower i^rofit without diminishing his in- 
 come. In the cotton industry alone the 
 number of hands employed his year is 
 8,610, against 2,1-50 in 1878, showing the 
 marvellous increase of 6,4C0, or more than 
 300 per cent. And in sugar refining the 
 number of persons nowemjiloyed is 1,113, 
 while in 1 878 not a man in Canada was 
 engaged in that industry. In the light of 
 such facts as these, it is idle to pretend 
 tiiat the National Policy has not accom- 
 plished, or is not accomplishing its pur- 
 pose. Thousands more working nnn now 
 find a market for their labor, all obtain 
 better wages, and the cost of living has 
 not been increased one dollar, except it 
 be by natural causes, over which no fiscal 
 legislation can exercise any control. 
 
 THE SUGAE TRADE. 
 
 The eftect of the closing of the Red- 
 path refinery in 187G was seen in the de- 
 crease of ] 7,800,000 lbs. in the importa- 
 tion of sugar below No. 9 D. S., that is to 
 say low grade or raw sugars, between 
 1875 and 1878, and in the almost total 
 destruction of our trade with sugar pro- 
 ducing countries. For instance, in 1873- 
 4 we imported 29,027,534 lbs. of sugar 
 trom the British and Spanish West In- 
 dies, and 10,133,145 lbs, from Brazil, 
 whereas in 1877-78 we imported only 
 0,842,933 lbs. from the British and Span- 
 
 ^ J > 
 
S9 
 
 1 
 
 * J >> 
 
 ^ 1 ) 
 
 1879-8). 
 IbR. 
 14,4SS,817 
 9 4(35,021 
 
 1880-1. 
 lbs. 
 15,29:^)2.1 
 7,8i)9.962 
 
 21,746,570 25,(i!9,388 
 
 49,9)9,(31 48.02H,408 
 5,919,987 23,003,875 
 
 >pan- 
 
 ish Wost Indies. On the other hand, the 
 importations from the United States ran 
 up irom 17,170,699 lbs. in the calendar 
 year 1875, to 71,(541,708 lbs. in the fiscal 
 year 1S78-9. 
 
 In 1879-80 the importations from the 
 United States fell ■ oti to 9,465,021 lbs., 
 while those from the Eritisli and Spanish 
 West Indies and Brazil increased to 77,- 
 645,988 lbs. The wonderful success of the 
 National Policy in restoring n direct trade 
 in sugar with countries of production is 
 shown at a glance in the following state- 
 ment of imports : — 
 
 1878-9. 
 ^ lbs. 
 
 Great Britain. 53,2S8,K2 
 United States. 45,195,335 
 British W. lu- 
 
 „dies 4,414,847 
 
 Sp.nishW. In- 
 
 ^<lifh 6,7.36 917 
 
 Brazil 
 
 The decrease in importations from 
 Oreat Britain and the United States has 
 been in refined sugars, while the enor- 
 mous increase in the importations from 
 the West Indies and Brazil is of raw- 
 sugars, brought into and refined in Cana- 
 da. Thus, in 1879 fho (juanti ty above 
 No. VA imported was 95,154,570 lbs., while 
 in 1880 tlie quantity of this grade brousiht 
 in was 1 8,753, 107 lbs., and in 1 881 , 1 4,;i63,- 
 813 lbs. The results accomplished by 
 the read.justment of the duties upon 
 sugar have certainly been most satisfac- 
 tory. Insteatl of looking to New York 
 and Boston for the bulk J of our sup- 
 ply, refineries have been established 
 within the country which give the Cana- 
 dian people not only a purer sugar than 
 the American refined, but on the average 
 of the year a cheaper sugar. But if no 
 advantage was gained in respect to 
 either quality or cost, the country would 
 still be greatly benefitted by the estab- 
 lishment of an industry afFording employ- 
 ment to thousands of our people, estab- 
 lishing a direct trade with the West 
 Indies and Brazil, and opening a market 
 in these countries for the produce of tlio 
 Dominion by the interchange of commo- 
 dities. In connection witii the recent 
 establishment of a line of steamers ply- 
 ing between Brazil and Canada, it Is 
 gratifying to learn that in ISSI there 
 Were imported from Brazil 2;>,G03,570 lbs. j 
 
 sugar, although only three years ago,' 
 under the old tarif}', not a single pound 
 was brought in. That the sugar refined 
 in Can.ada is of a better quality than that 
 which we were compelled to import from 
 the United States until recently, is attest- 
 ed by the reports of the public analysts 
 cf the Dominion, they having eiamineci 
 sixty-one samples in 1881, not one of 
 which was found to be adulterated. In 
 the light of the trade returns it is folly 
 to attempt to convince any one that the 
 country has not reaped an enormous ad- 
 vantage from the introduction of a fiscal 
 policy which enabled the sugar consumed 
 in ','anada to be refined by our own 
 people. 
 
 THE NUMBER OF HANDS NOW 
 EMPLOYED IN SUGAR KEFINING- 
 IN CANADA IS 1,113, WHILE IN 
 1878 NOT A SINGLE PERSON WAS 
 ENGAGED IN THE INDUSTRY. 
 
 THE TEA TRADE. 
 
 The trad« returns for 1881 show tha 
 accomplishment of the purpose of th© 
 Government in re-imposing a discrimin- 
 ating duty upon tea imported from the 
 United States, that purpose having been 
 to encourage direct trade with the coun- 
 tries of production. Of the total importa- 
 tion of tea into Ontario and Quebec in 
 the year ending June 30th, 1874, the year 
 in which the discriminating duty was in 
 force, only 15.85 per cent, came through 
 United States merchants, while the direct 
 importations from China and Japan in- 
 creased from 30.03 per cent, in 1872 to 
 50.08 per cent, in 1874. Upon the re- 
 moval of the 10 per cent, discriminating 
 duty in 1875, the proportion of the direct 
 importation from China and Japan began 
 to decline, until in 1878 it was only 18 
 per cent, of the whole importation, the 
 proportion of the importation from the 
 United States in the same period running 
 up to 55 per cent. In Marcb 1879, the 
 discriminating duty was agaiiz imposed, 
 and wo have as the result that in 1880 
 only 32 per cent, of the importation into 
 Ontario and Quebec was from the U^nited 
 States, while 45 per cent, came direct 
 from the countries of growth, China and 
 
40 
 
 Japan. The following is a detailed state- 
 ment of the imports of tea into the Pro- 
 vinces of Ontario and Quebec before and 
 since the introduction of the National 
 Policy : — 
 
 1879. 1881. 
 
 lbs. lbs. 
 
 Great Britain 2,355,210 2,766,894 
 
 United States 5,254,765 4,968,772 
 
 China 505,437 2,168,784 
 
 Japan 1,223,968 4,780,695 
 
 Other countries 12 79,676 
 
 Totals 9,339,392 14,764,821 
 
 The effect of the imposition of the dis- 
 criminating duty has therefore been to 
 increase the direct importations from 
 China and Japan about 400 per cent., 
 while the importations from the United 
 States has fallen off, and the result has 
 been.-to give the Canadian market to the 
 Canadian importer, and protect him from 
 an irregular and unfair competition from 
 American "dealers. 
 
 BY ABULLSIIING THE DUTY ON 
 TEA AND COFFEE, THE GOVERN- 
 MENT HAS RhLIETED THE PEuPLE 
 OF CANADA OF AN ANNUAL TAX 
 OF $900,000. 
 
 THE OOTTON AND WOOLLEN TEADE- 
 
 The following is a statement of the 
 value of cottons imported from deat 
 Britain in the last year of the free-tra- 
 der's tariflt and in the two years in which 
 the National Policy has been in opera- 
 tion : — 
 
 1878. 1880. 1881. 
 
 S $ $ 
 
 Beached and un- 
 
 b'eached 431,807 231,990 337,472 
 
 Printed, painted 
 
 or colored 1,982,414) 
 
 Jeanfi, denims I 630,308 
 
 and di-illinge... 26,929) 
 Clotbi 11 g and 
 
 '•wearing apparel 174,288 893,642 481,986 
 All other l,752,8iJ5 4,296,104 6,7^6,807 
 
 Total §4,868,273 $1,921,730 $7,199,573 
 
 By this statement it will be seen that a 
 very large increase occurred in the value 
 of cottons imported from Great Britain as 
 a consequence of the revival ot i^rosperity 
 in Canada, but the classification wiiich we 
 have made shows that the increase oc- 
 curred in n class of goods not yet manu- 
 facture(.i in this country. In sjnte of the I 
 
 enlarged demand for all kinds of goods^ 
 and the fact that the whole importation 
 of cottons in 1881 exceeded in value that 
 in 1878 by $2,831,000, or G6^ per cent., 
 the importation of ordinary grey and 
 white cottons has actually fallen off $94,. 
 000, or about 22 per cent. The explana- 
 tion of this result is to be found in 
 the fact that the development 
 of the cotton manufacturing in- 
 dustry in the Dominion has pro- 
 ceeded so rapidly under the National 
 Policy as to practically enable our own 
 mills to supply the demand for the cheap 
 classes of cotton goods. As an evidence 
 of this, we lind by the trade returns 
 that the importation of raw cotton into 
 Canada since 1878 has increased in 
 value $897,746, that is to sav, from 
 $808,105 in 1878 to $1,705,851 in 1881^ 
 or more than 100 per cent. These 
 Canadian cottons have supplanted the 
 British article, as will be seen by the 
 above table, to the amount of $94,000 j 
 they have supplanted the American 
 article, as will be seen by the statement 
 which follows, to the extent of $]72,.572^ 
 and have found an enlarged home market^ 
 in addition, to the amount of many hun- 
 dred thousand dollars. The development 
 of the cotton manufacturing industry still 
 continues in the Dominion ; some 'mills, 
 have been completed and jjut into opera- 
 tion since the close of the last fiscal year,, 
 others are now in course of construction, 
 so that in a short time it may reasonably 
 be expected that not only will the inijior- 
 tation of the common classes of cotton 
 goods cease altogether, but the necessity 
 of going abroad for the better (jualitiea 
 will considerably diminish. 
 
 The following is a statement of the im- 
 portation of cotton goods fi'om the United 
 States : — 
 
 1878. 1888. 1881. 
 
 Bleached or un- 
 bleached $539,773 $289,811 $367,191 
 
 Printed, painted or 1 
 
 O'llorcd 893,681 1 r.„Qo,. o^.-on. 
 
 Jeans, denims and f ^•^7,92b 033,7ea 
 
 driiliii<is 137,492] 
 
 Cl<)thiiig or woar- 
 i g upparel 191,441 210,108 188,152 
 
 All other 729,071 510,137 032,20ft 
 
 Total $2,491,418 $1,5787)72 .sl^l"^ 
 
 This exhibit, taken in connection with 
 the statement of imports from Great Bri- 
 
 t 
 
 + 
 
 f > 
 
 i i 
 
 
 i 
 
t 
 
 41 
 
 + 
 
 f > 
 i i 
 
 tain, indicates very clearly how success- 
 fully the National Policy has operated in 
 extending our trade with Great Britain. 
 For five years before the introduction of 
 that policy the imports of cotton goods 
 from the United States had been steadily 
 increasing, while those from Great Bri- 
 tain were rapidly dwindling down, until 
 in 1 878 the value of imports of manufac- 
 tured cottons from the United States 
 constituted 30 per cent, of the whole. 
 The National Policy, however, "has so 
 changed the current of trade that 'in 1881 
 the imports from the United States 
 formed only 20 per cent, of the total im- 
 portation of cotton goods. The result of 
 the operation of the present iiscal policy 
 has therefore been to yield a larger re- 
 venue to the Government, enlarge the 
 home market to the Canadian manufac- 
 turer, and transfer the foreign trade to 
 Great Britain, 
 
 In woollen goods we find that precisely 
 similar results have been accompUshed. 
 The value of woollens imported from the 
 United States before and smce the intro- 
 duction of the present tariff was .• 
 
 1878. 
 
 Blankets $ 28,998 
 
 Cloths uud tweeds. . 10,026 
 
 Flannels 68,695 
 
 H'wierj' 
 
 Dress goods 
 
 Ready-made cloth- 
 ing 128,446 
 
 All other 147,014 
 
 Total $383,779 $158,096 $205,993 
 
 The imports of woollens from 'Great 
 Britain have been : — 
 
 1880. 
 
 1881. 
 
 $ 4,567 
 16,5(39 
 11,961 
 14,315 
 45,019 
 
 S 4,174 
 15,652 
 12,860 
 12,080 
 79,083 
 
 25,818 
 39,817 
 
 27,651 
 51,300 
 
 1878. 
 
 Blankets $ 172,271 
 
 Cloths & Tweeds. 933,367 
 
 n nuols 201,616 
 
 Hosiery 
 
 Dress Goods 
 
 Ready-made Clo- 
 
 tilni? 759,439 
 
 All other 5,130,625 
 
 1880. 
 $ 113,453 
 
 2,217,017 
 175,759 
 209,207 
 
 1,222,957 
 
 307,301 
 1,058,43.' 
 
 1881. 
 $ 178,027 
 
 3,358,016 
 256,518 
 290,062 
 
 l,480,2<:i 
 
 329,620 
 1,061,518 
 
 Total $7,257,369 $5,303,850 S6,958,'<:51 
 
 Comparing 1881 with 187S, it is found 
 that the value of imports of woollen goods 
 from the United States decreased 48 per 
 cent., while the value of imports from 
 Great lii-itain declined only 4 per cent. 
 
 It is to be noted that although the gen- 
 eral trade of the country was much more 
 prosperous last year ttian in 1878, the 
 aggregate value of the importation of 
 woollen goods was $470,007 less, and the 
 explanation of this will be discovered in 
 the fact that the home production has 
 wonderfully increased. Thus, while in 
 1 878 we imported raw wool to the amount 
 of 0,230,084 lbs., in 1880 the import of the 
 raw material had increased to 7,870,118 
 lbs., and in 1881 had reached 8,040,287 lbs., 
 or nearly 2,000,000 more than were 
 brought in for manufacturuig purposes in 
 1878. The increase, moreover, was made 
 up wholly of the finer qualities of wool, 
 the imports from Africa having increased 
 from 300,450 lbs. in 1878 to 887,280 lbs. in 
 1881, and those from Great Britain from 
 205,212 lbs. in 1878 to 1,021,728 lbs. in 
 1881, while the imports of wool from the 
 United States, that is wool similar to that 
 produced in Canada, deci'eased from 5, 
 088,422 lbs. in 1878 to 5,531,279 lbs. in 
 1881. The Canadian farmer has been 
 given a home maricet for his wool by the 
 protection accorded to the establishment 
 of woollen mills in the Dominion. The 
 result of the operation of the National 
 Policy in the light of these statistics will 
 be accepted as most encouraging and 
 thoroughly satisfactory. 
 
 The following^ a statement showing 
 the value of woollen goods and ready- 
 made clothing imported into the Do- 
 minion of Canada during each year, from 
 1874 to 1881, inclusive : — 
 
 Fiscal year ending 
 30th June. 
 
 1874 
 1875 
 1876 
 1877 
 1878 
 1879 
 1880 
 1881 
 
 Imported. 
 
 Woollen 
 goods. 
 
 $11,107,035 
 11,912,270 
 7,423,201 
 8,015,298 
 7,013,941 
 0,315,905 
 0,077,258 
 8,377,795 
 
 Ready- 
 made 
 clothing. 
 
 $1,060,195 
 
 1,710,881 
 
 1,153,208 
 
 1,304,050 
 
 1,266,804 
 
 995,941 
 
 724,885 
 
 741,888 
 
 f 
 
42 
 
 Nvf 
 
 THE GOAL DUTY. 
 
 Closely allied to the sugar trade is the 
 Coal trade of the Maritime Provinces. No 
 tariff, at least no national tariff, could 
 fitanci for an hour that wrought upon the 
 people of the Maritime Provinces the in- 
 justice of ignoring the protection of that 
 industry, in which about §15,000,000 are 
 Invested. 1 1 is held by the leaders of the 
 Opposition that the coal tax is a sectional 
 tax. Eut by the same reasoning they 
 themsolves were responsible for a section- 
 al tax of 1 50 per cent, upon petroleum, 
 Which is found in Ontario alone of all the 
 provinces. Before discussing the coal 
 tax, it will be well to show the good 
 effect of that tax upon the coal interests 
 Of Nova Scotia. The following table gives 
 a compj^rative statement of the coal sales, 
 labor, itc, in that Province for 
 1878, the last year of the Mackenzie 
 Government, and for 1881, two years after 
 the imposition of the duty : 
 
 Inc. In 
 1881 over 
 ,^ 1881. 1878. 
 
 yoal sales from Nova Scotia 
 
 mines I,034,8i0 341,289 
 
 f he nurubftr of men employed. . li.tiOO -165 
 
 WumbLTof days worked at coal. 847,5rf5 183,705 
 Tons of c'lal shipp d from Nova 
 
 BcotialoMonlreal find Quebec 268,628 184,918 
 Total imports of coal tit Aion- 
 
 treal aad Ciuebcc 529,091 201,017 
 
 woal pbipments from Capo Hre- 
 
 tjntoMonu-eaift dtiuebec. 146.122 118,014 
 Total tons oi ooat shiiiped from 
 
 Sydney Harbor 25:rt;961 130.9U0 
 
 founas^o of ships arrived in Port 
 
 Sydney 416,082 ;9i,021 
 
 This is a satisfactory exhibit. And, 
 llOw, how can the Ontario or Quebec far- 
 mer, who burns wood, and may have 
 Wood for sale as fuel, and whose produce, 
 Owing to the duties on foreign breadstuff's, 
 is driven into the Maritime Provinces, 
 there to be consumed by the miner, 
 complain of the coal duty, to which this 
 development of a great industry is mainly 
 due? 
 
 But it is contended by the leaders of 
 the (Jpposition that the coal iluty is paid 
 by the " i^oor man,'" meaning the laborer 
 and artisan in cities and towns. They 
 COnsumo on an average less than six tons 
 a year, and it the duty is added the tax 
 Would be less than the loss of three days' 
 Work under the return of the hard times 
 and ^IiG iiard rulers of 1874-78. But it 
 
 has been shown at competing points the 
 duty is not added to the price. But even 
 if that were true, it would be cheaper, 
 say, for the Toronto mechanic to pay it 
 under the general system of Protec- 
 tion, of which it is a part, than 
 return to Free Trade and find 
 himself reduced to the extremities 
 of 1874-78. The comparative dearne«s 
 or cheapness of an article depends after 
 all upon Kie power to purchase. 
 And tliere is not an artisan in 
 the Dominion to-day whose purchasing 
 power has not been materially increased 
 by the establishment of new and the de- 
 velopment of old industiies. But it has 
 not l)een clearly shown that the artisan 
 and manufacturer in (Ontario pay the 
 whole of the coal duty. True, the im- 
 porter may actually pay into the Custom 
 House at Toronto the duty collectable on 
 his imiiortations, and he may levy that 
 duty upon his customer ; but the ques- 
 tion turns upon whether tlie American 
 mining companies do not make a reduc- 
 tion in their prices in order to hold the 
 Ontario market against Nova Scotia coal. 
 The following table taken from the 
 Trade Returns sho^^ the importations of 
 anthracite into the several provinces 
 from the United States, with average cost 
 per ton : — 
 
 Province. 
 
 Ontario. 
 
 Quebec. 
 
 Nova Scotia. 
 
 New Brunswick. 
 
 Year 
 
 1877 
 1878 
 188.1 
 ISSI 
 
 1877 
 187- 
 1880 
 1881 
 
 1877 
 1878 
 1880 
 If^Sl 
 
 1877 
 1S7S 
 1880 
 188! 
 
 Tons. 
 
 261,895 
 26t;,4i4 
 S35,794 
 357,521 
 
 117,121 
 105,381 
 142,239 
 161,449 
 
 11,87 
 10,592 
 12,.513 
 15,969 
 
 2.^,2;13 
 21,210 
 21,237 
 28,243 
 
 Total 
 cost. 
 
 S 
 i, 103,944 
 1.0J2,816 
 1,0 2 -',1155 
 1,5.2,376 
 
 468,759 
 3.n,.S.iO 
 378.156 
 608,813 
 
 44 560 3 74 
 
 3 1, 169 2 93 
 
 .<W,467' J 58 
 
 54,661 3 70 
 
 I 
 
 92,823 4 00 
 
 73,5)5 3 40 
 
 e^^,' 95' 2 81 
 
 104 8071 3 70 
 
 Cost 
 
 p:-r 
 
 ton 
 
 $c. 
 4 45 
 3 85 
 
 3 01 
 
 4 25 
 
 4 00 
 3 15 
 
 2 65 
 
 3 77 
 
 It will thus be seen that, no matter by 
 [ whom the duty ]-a ]w.\. coal is clieaper 
 i than it was in .•^ome oi' tiu'iiai-ttriti'aays, 
 
 Ji. 
 
 J 
 
 \ 
 
3 74 
 
 2 03 
 
 3 70 
 
 400 
 340 
 
 2 81 
 
 3 70 
 
 48 
 
 I 
 
 ■T'- 
 
 when the " poor man," equally with the 
 manufacturer, was less able to buy it. 
 But, let it be repeated, that even if the 
 Ontario mechanic (and the farmer, whose 
 coal oil, tea and coffee were heavily taxed 
 by the Araokenzie Government, does not 
 come under that category), pays one-half 
 or the whole ot the duty, he is better able 
 to buy a ton to-day than he was when 
 coal came in free from the United States, 
 and with it " slaughtered " goods, destroy- 
 ing Canadian labor. 
 
 THE INOKEASE IN THE PUBLIC 
 DEBT. 
 
 Are Canadians aware of the frightful in- 
 crease that has been made to their burdens 
 and responsibilities during the last few 
 years ? 
 
 Are they aware that our net debt has since 
 Confederation Increased from seventy-flve 
 tnllllors to more than double that hug? sum ? 
 
 Are they aware that the present Govern- 
 ment is recklessly mortgaging our future, 
 Is plunging dally Into new extravagance, 
 ard is committing us to a scale of exp*n- 
 dlture based on our revenue In prosperous 
 times ? 
 
 These conundrums are propounded by 
 the Globe, and we hasten to relieve our 
 anxious and enquiring contemporary by 
 replying that the people of Canada arc 
 fully aware of all these things, and what 
 is more to the point have a lively appre- 
 ciation as to who is responsible for them. 
 
 Let the electors ponder those facts : 
 
 At the time of Confederation me net debt 
 ot the Dominion was $75,728,641, and 
 when the Conservative party went out of 
 office seven years later, the debt was $99,- 
 848,4GJ, showing an apparent increase of 
 S24,l 19,820. But during that period the 
 Dominion Government assumed debts of 
 the provinces to the amount of ?45,52.>,- 
 379, which was simply a transference of 
 an item from one account to another, and 
 did not involve any additional burden 
 upon the people. Deducting this sum, 
 th(.M'efort', tho real increase ui the debt of 
 
 Canada under the Conservative party 
 from 1867 to 1873 was only $8,594,541. 
 
 In November, 1873, the Liberal party 
 assumed the direction of public atlaire, 
 and what was the consequence ? — that 
 the debt of $99,848,461 in 1873, was swol- 
 len to $140,362,069 in 1878, or an increase 
 of $40,513,608 brought about in five years 
 by " the adoption, as a matter of parlia- 
 " mentary policy, of the assumption that 
 " the public debt is large enough." But 
 there is something to go to the credit of 
 the Reform Government. In their term 
 debts were allowed to the provinces to 
 the amount of $4,927,060, which we de- 
 duct from the gross increase, leaving tha 
 net augmentation of the debt under " Re- 
 form" rule $45,586,548, against an incre- 
 ment of only $8,594,541 in the previous 
 seven years under Conservative adminia* 
 tra.lon. 
 
 In October, 1878, the Conservative 
 party was restored to power, and under 
 their administration the public debt in- 
 creased from $140,362,009 in 1878 to 
 $155,395,780 in 1881. Of that increase 
 $5,760,000 is represented by deposits in 
 the Government savings banks, and about 
 $7,000,000 was (^aused by the deficits of 
 the late Government. Had Sir Richard 
 Cartwright provided for his deficits, had 
 he provided for the sinking fund, aa he 
 was bound to do, the increase in the pub- 
 lic debt during the last three years would 
 nave been only eight million dollars, of 
 which nearly six millions was caused by 
 deposits in the savings banks, while under 
 " Reform " rule the increase, in- 
 cluding the deficits, was $42,500,(MJ0, and 
 in their iieriod the deposits in the Gov- 
 ernment savings banks decreased by .^2,- 
 000,000. 
 
 How then stands the account ? 
 
44 
 
 FIRST OONSKrtVATlVE PERIOD. 
 
 Debt, 1867 $75,728,641 
 
 " 1873 09,848.481 
 
 Increase $24,119,820 
 
 Ltis debts of the Provincea assumed. $15,525,27!) 
 
 Net increase $ 8,594,5il 
 
 REFORM PERIOD. 
 
 Debt, 1873 $ 99,848,461 
 
 " 1878 140,362,009 
 
 Increase $ 40,513,608 
 
 Leas debts of the Provinces assumed $ 4,927,060 
 
 Net increase $ 35,586,518 
 
 Add deficits 7,500,000 
 
 Total increase $48,086,518 
 
 SECOND OONSEEVATIVE PERIOD. 
 
 Debt, 1878 $140,362,089 
 
 " 1881 155,395,80 
 
 Increase $ 15,033,711 
 
 Less Liberal droits provided /or. . . .$ 7,500,000 
 
 Net increase $ 7,533,711 
 
 "We may carry this interesting com- 
 parison a little farther with advantage. 
 We find, lor instance, that in the nine 
 years since Confederation, during which 
 the Conservative party controlled the 
 public affairs, there was expended upon 
 the great pubhc works of the country, 
 Buch as the Pacific liailway, the Intercol- 
 onial Eailway, the acquisition of the 
 Northwest, etc., the large amount of 113,- 
 064,461, in excess of the increase in debt. 
 That is to say, out of the current re- 
 venues the Conservative party were able 
 to expend more than thirteen million 
 dollars upon permanent works of great 
 value to the country. But what did the 
 "Reform" Government do ? Alter fail- 
 ing to provide for the sinking fund, after 
 rolling up deficit upon deficit, after cut- 
 ting down, so as to render them ineffi- 
 cient, the expenditure on many import- 
 ant branches of the service, they actually 
 increased the public debt by !$1,097,612 
 
 more than the expenditure upon public 
 works. 
 
 We tell the Globe that the people of 
 Canada are fully a\, .re of the increase in 
 the public debt since Confederation, and 
 they will not forget when election day 
 comes round these indisputable facts: 
 
 That from 1867 to 1873 the phhlic debt 
 
 INCREASED UPON THE AVERAGE !^li*4'i7 ,791 
 
 per annum. 
 
 That from 1873 to 1878 the pdblic debt 
 increased upon the average i4?.,< -'v hc» 
 per annum. 
 
 That FROM 1878 to 1881 the i- : debt 
 increased upon the average $3»511,337 
 per annum. 
 
 THE RATE OF TAXATION. 
 
 The Globe asserts that "the rate of 
 " taxation per head has increased from 
 " $4.07 to $7.02 per annum since Confed- 
 " eration, an increase of $2.95, or 74 per 
 " cent." We will institute a comparison 
 of the rate of taxation under the Helbrm 
 and Conservative Governments from the 
 figures supplied by the Globe itself, 
 which are as follows : — 
 
 Total Rate of 
 
 Year ending Assumed taxation taxation 
 
 June 3J. population, coileetod. ^er head 
 
 1874 3,745,312 21,205,0!)2 $6 46 
 
 1875 3,831829 24,618,715 6 43 
 
 1876 3,918,346 22,587 ,58f 5 76 
 
 1877 4,0.4,861 22,059,274 5 50 
 
 1878 4,09i,380 2:,375,011 5 46 
 
 1879 4,177.897 22,517,382 5 39 
 
 1880 4,204,414 23,337,4U() 5 46 
 
 1881 4,324,810 29.635,207 6 85 
 
 These figures, for which we are indebted 
 to the Globe, prove at a glance that in 
 the first two years of the administration 
 of the present Government, 1879 and 
 1880, the taxation was less than in any 
 year in which the Liberals held office. 
 But it will be answered that in J 881 the 
 taxation per head ran u}'-^$].39, 
 or from $5.46 to $6.85, which 
 
 6 
 
45 
 
 is quite true. It is equally true, 
 however, that a surplus of $l,3*^*^r 
 000 was obtained in the latter year, and 
 if this be deducted the taxation is found 
 to have been only $5.85 per head, against 
 an average annual taxation of $5.92 dur- 
 ing the Mackenzie administration. The 
 reason why we deduct the surplus is be- 
 cause it has been used in the reduction 
 of the public debt, and so has diminlslied 
 taxation for all time to come. But a more 
 just comparison of the relative taxation 
 under Liberal and Conservative rule can 
 be had, There were collected from Cus- 
 toms, Excise and Stamps, in 1874-75, 
 $20,004,878.96; in 1875-70, $18,614,415.- 
 02; in 1876-77, $17;097,924.82; in 1877-78, 
 $17,841,938.19; in 1878-79, $18,476,613.- 
 35; making a total of $93,295,770.34. The 
 
 CAMPAIGN NOTES. 
 
 Tho Witness expresfies this cat.did opinion 
 on tba situation : — 
 
 li The Ueform party seems to be pretty 
 well demoralized in Montreal. Wo cannot 
 learn from its organ that it has any strong 
 objections either to railway monopolies or 
 to protective duties. It would seem to havo 
 already confessed failure in the elections." 
 
 Senator Macpherson prefaces his latest 
 open letter to his old constituents with these 
 apt quotations : — 
 
 " 1 suspect we shall have another tariff 
 bill next session, and another tariff bill after 
 that, and then, I hope, in the good time to comey 
 that wo shall have still another tariff bill." 
 • « * —Hon. L. Blake {Speech at Montreal^ 
 1881)." 
 
 deficits during the five years were $5,- 
 491,269.51. If the deficits had been col- 
 lected and added to the sum above, it 
 would have amounted to $98,787,039.85. 
 The average for the five years was $19,- 
 757,407.97. The average population for 
 this period being 4,050,674, the per capita 
 tax during that period was $4.88 per head. 
 These are the figures and these are the 
 results. There were collected from Cus- 
 toms, Excise and Stamps, in 1879-80, 
 $18,479,576.44; for 1880-81, $23,942,138.- 
 95, making a total of $42,421,715.39. Do- 
 ducting the surplus for the two years $2,- 
 589,515.36, leaves $39,832,200.03. The 
 average for the two years of taxation was 
 $19,910,100.01, being, on a population of 
 4,282,300, $4.05 per head during the last 
 two years, as against $4.88 during the 
 other period. We say nothing about the 
 greater ability of the people to pay the 
 taxes now as compared with their ability 
 to* do so in 1874-8. Apart altogether 
 from tlsat consideration tho figures prove 
 the actual taxation to have been less per 
 heatl during the past three, than in the 
 preceding five years. 
 
 " What but mischief can be your object ? 
 No sooner are the springs of industry again 
 put in motion — no sooner are the sou^ce^/of 
 commerce unlocked, and are pouring forth 
 the riches ot the country in every direction 
 —no sooner has returning confidence in a 
 reanimated government given a new impulse 
 to every exertion of skill, and new directions 
 to labor and ingenious industry, than yon 
 agitate your question of reform to set men 
 mad upon theories of government, instead of 
 supporting it by the peaceful enjoyment of 
 its practical blessings, checking the rising 
 prosperity of peace, and plunging us back 
 into the dangers and dilftculties from whioJ 
 we had almost miraculously emerged."— 
 Frskine. 
 
 We have another instance of the hostile 
 feeling of leading Reformers in regard to the 
 factory operations. At a meeting held in 
 Paris by Mr. Paterson, the Opposition candi- 
 date for South Brant, Mr. Watts, the Con. 
 servative standard bearer, replied to him. 
 Then by arrangement Mr. Slater, a promi- 
 nent supporter of Mr. Patterson, followed on 
 bis behalf, and this is what he said ;-- 
 
 '(Gentlemen, what Mr. Watts has just 
 stated as to my views is correct, and I again 
 
46 
 
 Bay that it would be better for the Oovorn- 
 metit to do iiwny with the iniquitous taiiQ it 
 U closed ev.ry luauufuctory and drove tlie 
 opeiativee and tboir families into the streets 
 and for the Government to erect huge poor 
 noudes to shelter thorn." 
 
 Mr. Paterson did not repudiate this utter- 
 ance of his appointed mouthpiece. How 
 many of our mechanics will cast their votes 
 for a party which thus proclaims its desire to 
 Bend them to the streets or to a poor house ? 
 
 Toronto Tele ffram .—" It is all very 
 Well for the chief organ of the 
 Reform party to appeal to former 
 friends to come to the rescue of the 
 party now, and save it from annihilation- 
 But in many quarters the appeal will not be 
 met with a ready response. The organ has 
 been abusing these people for years, and can 
 hardly expect them to swallow all its abuse 
 and meekly turn round and do its bidding. 
 After the rout of September, 1878, it de- 
 nounced the manufacturers of Ontario as 
 knaves and the farmers as fools, and now it 
 has the hardihood to appeal to these same 
 'knaves' and 'fools' to come to their aid, 
 and help to overturn the Government. Its 
 rabid utterances have done the party more 
 harm than good." 
 
 Old-time LibenilH are flocking to the sup. 
 port of the National Policy in Ontario. Mr. 
 M. O'Connor, who Keconded Mr. Goldie'3 
 nomination in the South Wellington COn. 
 ventiou, said " be had been a consistent Re- 
 'ormer all his life, but felt that in the pre- 
 sent juncture it was tlio duty of every true 
 Canadinn to give a hearty support to the pre- 
 sent Government, who had shown at once 
 their ability to devise a trade policy in the 
 best interest ot every class of the people and 
 the honesty to carry out the pledges made 
 prior to the late elections." Mr. J. L. Mur- 
 phy, who also spoke, said that on this occa- 
 sion ho would support the Conservative can- 
 didate. As a young Canadian he believed it 
 to be his duty to abandon a party, every 
 plank in whose platform was retrogressive 
 and anti-';anadian, and work in the ranks 
 of the Liberal-Conservative party, which has 
 proved itself to bo heartily Canadian. 
 
 Mr. Henry Smith, who has received the 
 Conservative nomination for Kent, will make 
 a worthy successor to the late member, Mr 
 Stephenson. Mr. Smith is one of the most 
 prominent and influential men in the county 
 has participated actively in every contest for 
 years past, and the unanimity and enthusiasm 
 with which his nomination was received, 
 presages his election by a large majority. 
 
 
 f 
 
 
 
 W 
 
 I i< 
 
A 
 
 iNAL 
 
 For the encouragement of Canadian Industries, Agricultural, 
 
 Manufacturing, Mining. 
 
 
 A PACIFIC RAILWAY 
 
 FROM OCEAN TO OCEAN, 
 
 on Canadian soil, for the development of our Great West and 
 the building up of Cftnadian commerce. 
 
 J- 
 
 -A determined opposition to everything calculated to weaken 
 the tie binding us to the Mother Country. 
 
 //I 
 
 I 
 
 I' ilii > i»n wi in ■« w mmiL i I