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SIMEON DUCK MINISTER OF FINANCE, m— THE PROVINCIAL -LEGISLATURE, ON MONDAY, MARCH 29th, 1886. VICTORIA, B. C: MUNROE MILLER, BOOK AND JOB PRINTER, 1883. ii y It p i't! FINANCES OF THE PROVINCE OF BRITISH COLUMBIA. Hon, S. Duck, — Mr. Speaker: — In rising to move that yon do leave the Chair and that the House do resolve itself into Committee for the purpose of granting a sui)ply to Iler Majesty, it de- volves upon me as the financial representarive of tlie Government to lay before the House a statement of the financial condition of the Province, as also a tnrthcr state- ment showing the financial transactions ot the Goveiiiment during the tinio that I have had the honor of presiding at the head of tins imi)ortant bi'anch ol the Public iScrvice I desire, also, to call the attention of the House to a consider- ation of the estimates which have been placed in the liands of Hon. Gentlemen shewing the probable revenui' and ex- penditure designed to meet the recpiirenientsot the I'lovince during the financial year ending June 30ih, 18^7 — The question of the country's finances has been freely discussed and ventilated on both sides ot the Honse, b}' the Press and from the platform, by all classes, men ot ability and otheis whose only knowledge of finance is their own ad- mitted ignorance of its fir.st and last princi]iles, and who, in their ignoraM(;e, have the conceit and impudence to arrogate to themselves the abiliry to judge of the fitness and capabili- ties of others, and who also desire to measure the' intelligence of other people by their own miserable standard. We have had the strange spectacle of a class of individuals^ ])arading their own ignorance, as a qnalification wiiich they think fully justifies them in denouncing others, of whom they know nothing, as l)eing totally unfit and inca]ial»le of performing the duties which usually pertain to the duties of Finance Minister. Verily Mark Twain spoke the truth when he said — "The less a man knows about a subject the better qualified and the more willing he is to speak upon i"^ " By this he evidently intended to convey the idea that v endver the speeches of this peculiar class of individuals rui counter "' O: v'mi ^■ I,' ii- I ■f to the facts of the case, so much the worse it must he for the facts. That the speeches themselves may be interesting as showing the brass and stupidity of the speakers, and that their gushing, flowing eloquence may still be admired as demonstrating that a lively flow of language is not always conclusive evidence of profound wisdom, but very often, on the contrary, is an index pointing to the upper story and indicating " Rooms to Let." No doubt Mark Twain had this peculiar class of individuals in his mind's eye when he gave utterance to the sentiment that I have just quoted. Still it cannot be denied that many able and excellent criticisms and dissertations on the financial state of the Province have been made, day after day and week after week, both in the House and out of the House, by the Press and from the platform since the opening of the present Session. Indeed so much has been said upon this question that every honorable gentleman must beas well acquainted with the financial affairs of the Province as he is with the multiplication table, and, hence, if it were not for the prevailing custom which makes it obligatory on my part to come down to the House with what is called the Budget Speech, there would be little or noth- ing further for me to do, but simply move the House into a Committee of Supply. Everything that I may have to. say will have been anticipated, perhaps, and that too before the main question has been presented tor consideration. So eager have been honorable gentlemen opposite to take advantage of what they foolishly supposed was a weak point in our finan- cial citadel that they did not have the common courtesy to ask the question "Are you ready?" before they opened fire from their big guns, pouring in hot shot and all kinds of ungainly missiles. In one sense, I am glad of this, because their ammunition must be nearly exhausted, their shots have fallen harmlessly to the ground, or, rebounding, have burst upon their own heads, causing dire confusion in their own depleted ranks, while their puny forces lie prostrate and utterly demoralized. Their big guns have been spiked and silenced, so to speak, while their system of guerrilla warfare has proved a miserable failure, and it only re naius for them to accept the terms that are now ofli'ered — submit to an unconditional surrender and join with us in a participa- tion of the benefits which invariably follow in the wake of a good and successful cause. It is true the wind has been taken out of my sails in a degree (laughter, and hear, hear, from the Opposition benches) not, however, by honorable gen- tlemen opposite, but by our friends on this side of the House, who have returned sh^t f )r shot with unerring aim and with 5 ml telling effect, while our flag-ship has been anchored close by under a full head of steam patiently waiting to engage in the final conflict and secure to the enemy a respectable funeral f(5r his unfortunate dead. But the battle has been fought and won already, while I have had little or nothing to do but look on and watch the glorious achievements that have been attained. This, of course, has been a grea'j comfort and consolation to me, because it relieves me from the necessity of going so fully into the question as otherwise I should have felt it my duty to do. What I may say has already been anticipatea, of course, and my speech will consist of sentiments and ideas, no doubt, that have over and again found expression in this House, and hence, as before stated, it is only to comply with the usual custom, and not with a hope of presenting any additional inform- ation, that I proceed in the further discharge of my duty. Now Sir, it is one thing to know that the affiiirs of the Province have been conducted in an economical and satis- factory manner, and that the country has good reason to congratulate itself on its growth and prosperity, the result, may me not say, in a decree at least, of the constant efforts ot the government to administer the affairs of State in a manner which we trust and believe will meet the approval of honorable gt itleraen and be acceptable to the general public. But it is quite another thing to make a verbal statement and bring these questions before the House in a clear, intellig- ible and unmistakable form. For ipstance, a man may know a thing to be true and yet be unable to prove it. He may be a first-class financer and accountant, capable of accomplishing everything that can be done with the amount of money at his disposal, and of keeping a full and correct account of the same, and yet be almost wholly unable to explain every transaction in a manner at once clear and easily comprehensible to others. In a word, he may be an excellent workman, but a very inefficient public speaker. Now Sir, while I should be very loath to follow in the foot- prints of some of our adversaries, who, while admitting their ignorance of finance, do not hesitate to criticise the conduct and ability of others, I say Sir, while I am far from being ignorant of the question, I do not presume on any superior ability as a financier and public speaking is certainly not my forte. On the contrary, I have employed my whole time, until recently, in the physical occupations of life, devot- ing but little attention to a consideration of literary pursuits, and as this is my first attempt to grapple with the difficult ' f n -■'¥ 6 >r ''I M :V-\ ill; question offiiiiince, orto niinivol its manifold complications, I trust that lionoraMo gentlemen will bear with mo in my endeavors ti> i)hife Ijctore tiie House such tacts und figures as I liave been able to grMsp and cotniirehend. As you jTre aware, my duties as u ineniber of the government began on the 2()th of M;irch, 188;"), but mj aitpointment to the position of Minister of Finance was not confirmed by the electors until the l")th ot April, tollowing, and, hence, my knowledge of the Hnaiicial allairs of the Province, prior to that date, has been arcpiircd in the usual way, from the linancial records of the province. The same may be said in regard to the subse(pient financial transat^tions of the Government. All are, of course, matters of (!K)se record, but the latter, coming more directly under my own j)ersonal observation, I can speak, at least j)urtially, from experience, in dealing with this [)articidar part of the question. I shall first call your attention to the financial condition of the Province immediately i»receding Confederation, showing its assets and liabiiiti»'8 at that date, the estimated revenue and expenditures for the year ended Dec. 31st, 1871. the various sources of Pr(»vincial Revenue that were trans- ferred to the I)(.)minion and the different public services, and the expenses comiected therewith that were assumed by that government as a con.lition of the Terms of Uni »n. Also to the recci[»ts and ex[)cnditures up to the -0th J'dy, 1871, that bein<; the date of Confederation, and which several statements will give you an approximate idea of the fiaa> cial state of the Province during its transition period. I shall next refer, briefly, to the financial condition of the Province immediately after confederation, showing its assets and liabilities at that time, the advantages accruing to the Province as a result of confederation, and the different state of the finances at various times closing on the 30th June, 1885, a detiiiled statement of the expenditure of which last named year will be found in the Public Accounts which have been placed in the hands of honorable gentlemen. I shall, also, call yotir attention, very briefly, to the receipts and expenditure between the 30th June, 1885, and the pre- sent date, so far as 1 have been able to ascertain them, and finally, to a consideration of the estimates lor the financial year ending June 80th, 1887. Immediately preceding confederation there were out- standing against the Province debentures to the amount of 'I \ ■ 31,168,000, and in addition to this there was a floating debt, which, with interest, etc., amounted to 3320,461.37, making the total debt of the Province at that time 31,488,461.87. The available assets were, cash on hand at the Treasury and in the hands of the various Crown Agents 3488,056.34, or in other words the net, or actual debt of the Province on entering contederation was 31,000,405.08. By the 111 clause of the British North America Act, Canada became liable for the debts and liabilities of each of the provinces at the date of Union. It waft, of course, an important matter that equal justice should be meted out alike to all the pro- vinces, because any mistake in this direction would have endangered the financial basis of confederation and might have proved disastrous to its future. Some of the Provinces had incurred liabilities greatly in excess of the others and as Canada had become responsible for the payment of their liabilities to the full amount, therebv imposing additional burdens on tlioae Provinces whose deots had not reached the maximum amount, it became ne^^ossary that some system should be adopted that would afford to the latter a corres- ponding relief. The debts of ISTova Scotia and New Bruns- wick, based on population, were supposed to be greater than those of the other provinces. These were found to be about 327.77 per head, and, hence, at t"he time of the union of this Province with the Dominion, in order to place us on an equal financial basis with those Provinces, it was agreed that we should be allowed'327.77 per head, our population being estimated at sixty thousand. This arrangement en- titled us to a debt of 31,666,200, and as the total debt of the Province, as before stated, was only 31,000,405,03, the dif- ference, 3665,794.97, at once became an actual asset of the Province, upon which it was agreed that we should receive, by half-yearly payments in advance from the Dominion Government, interest at the rate otfive percent, per annum. This being one of the principal sources of our provincial revenue, and the only one in fact as forming a part of the Dominion subsidy, that has undergone any change from the beginning, .the one of all others that has caused so much confusion and given rise to so much difference of opinion, as having been made the issue of many a hard fought battle both in and out of the House, it may not be disinteresting to follow it through its various modifications down to its present apparently fixed attitude, referring briefly to some of the causes which led to the necessity of reducing the capital amouat and the rosults attending the sam,e. MM ft Wit I I I' £' 1t : i 8 This I will endeavor to do before I take my seat, but at present pass on to a consideration of other parts ot the ques- tion in the line and order as before designated. The liabilitieH of the Province then, immediately preced- in,363,90, making a total under these heads of $203,187,89. I have been unable to ascertain the exact amount received from these sources between the 20th July and the 81st Dec. as the Dominion Fiscal Year ended then, as it does now, on the 30th of June, but the receipta of the Dominion in the Province of British Columbia for the first year after Confed- eration were $3o6,099, while Dominion expenditures during the same period amounted to $481,330, being $126,231 in favor of the Province. This includes interest and other expenses in connection with the public debt, railway surveys, etc., which, perhaps ought not to be taken into account at this time, "but it will easily be seen that in the matter of annual receipts and expenditures by the Dominion in British Columbia, the Province lost nothing by Confederation. The following are the diflt'erent Public Services referred to and which were assumed by the Dominion Government under the Terms of Union on and after the 20th July, 1871: The salary of His Honor the Lieutenant Governor, (and here it may be remark- ed that the salary of His Honor under the Crown Colony systein, was $19,400 an iually, but immediately after Con- federation it was reduced to $8000, and subsequently increased to $9000 per year, at which figure it now stands) ; the maufu^eraent and charges in connection with the Customs, I*08t Offices, Conveyance ^of Mails, to, from and within the Province, Supreme and County Court Judges, Pensions, the Indians, Telegrapl Militia, Government Vessels, Light-houses, Excise, Navig i >n, Quarantine and Penitentiaries. The estimated oxnenditure for these services for the yeir 1871, was $1 '^3,261, and this has been continually increasmg from yea. tO year until the present ime. I have before said the Cotimatcd revenue of the Province from all sources for the year rrded Dec. 31st, 1871, ^ was ?533,9r)0. The actual receipts were $514,8'^0.92, being $19,149,08 less than the amount estimated. This albcrep- , ancy arose, no doubt, to a great extent at least, in conse- quence of the receipts from Customs, etc., being transferred to the Dominion, and collected by that Government from and after the 20th July. It is quite true, the Dominion sub- sidy for the half year, viz: — $107,000 was duly paid to the Province, but the amount received by the Dominion for customs etc.*during the same period would fully account for the difference. The total revenue of the Province from all sources up to the 20th July in the year 1871 was $322,904.44, the total expenditure $342,179.29. It will thus be seen that the receipts and expenditure of the Province at that time were about equally balanced, but it must not be forgotten that our Provin- cial debt bore heavily upon us involving the payment annually, for interest and Sinking Fund, of a sum amounting to nearly $160,000, leaving but little for public works and other necessary requirements of government. If we take the charges in onnection with the Fixed Establish- ments Allowances, Office Contingencies, etc., viz. — $154, 118,75, and the cost of the differeat services assumed by the Dominion Government, $64,729,96, we find the total cost of civil government including these services, together with the interest and other expenses of the public debt to have been $872,486,21, leaving only the small sum of $149,648,80 avail- able for all the other services of the Province, such as the Administration of Justice, Charitable Allowances, Educa- tion, Hospitals, Police and Gaols, Transport, Works and Buildings, Beads, Streets and Bridges, and the many other HP ■:MkM&i--:imfim 10 little expenditures that are involved under the head of mis- cellaneous. This, then, was the true financial state of the Province prior to the date of Confederation, only the' small sum of $149,000, available for the public services referred to, and a debt of $1, 000,405,03 hanging over our heads, with no available assets. What a change has taken place since then. The whole am'ount of our available revenue at that time, after providing for the Fixed Establishments, In- terest etc., wpjild not more than meet the demands ot our educational requirements of to-day. But to proceed — We come now to a consideration of the second part of the question, viz: The financial condition of the Province immediately after the Confederation, and the different changes through which it has passed up to the present time. Of course, 1 cannot go minutely into details in an off-handed address like this, because that would be taxing my memory to an un- justifiable extent, and might, perhaps, be attempting some- thing beyond my power to accomplish, to say nothing about the time that would be required and which the House might not be in a disposition to grant. On entering Confederation, then, we find ourselves sud- denly relieved from a heavy debt with no available assets, to a position of comparative affluence and financial freedom. Instead of an irresponsible executive, the management of the affairs of state transferred directly to the people — our isolated position as a colony of Great Britain at once re- movei and the Province brought nearer and nearer to the centre ot commerce and civilization with bright hopes in anticipation of the completion of the Canadian Pacific Rail- way, which is now an accomplished reality ; free from debt, with an accumulated capital of $1,280 000, yielding an annual revenue of $214,000 forever ; abetter and more extensive mail system provided; the expenses in connec- tion with the management of the Indians taken from our shoulders ; those of the open seas and inland navigation provided ior by the Dominion Government, together with many other important public services involving heavy ex- penditure, and our people very naturally felt that '^' -^y had awakened to the realization of a new era in the history of our country ; and notwithstanding the many little disputes and the apparent repeated failures on the part of the L»um- inion Government to carry out the terms of Union in their integrity, causing more or less stagnation for the time being, there can be no doubt that confederation with Canada was a wise and statesmanlike act on the p. rt of our % ' ■■;r ( ■ 11 people ; that the Province has been steadily progressing from that time to this, and that it will continue to do so for many years to come. The following statement will show the annual receipts of the Province from ordinary sources during the fourteen years ot Confederation: Six months to 31st December 1871 $191,819.67 For the yearto Slst December 1872 324,301.16 For the year to 3l8t December 1873 363,258.49 For the year to 3l8t December 1874 370,524.79 For the year to 3l8t December 1875 350,208.29 For the year to 3l8t December 1876 : 381,119.92 For the year to 3l8t December 1877 403,830. 15 For the year to 3l8t December 1878 428,121.20 Six months ended June 30th 1879 212,656.46 For the year ended June 30th 1880 386,249.84 For the year ended June 30th 1881 , 394,334.71 For the year ended June 30th 1882 402,100.27 For the year ended June 30th 1883 422,136.53 For the year ended June 30th 1884 497,055.80 For the year ended June 30th 1885 592,268. 13 Total $5,719,985.41 m It will thus be seen that the revenue of the Province had been gradually increasing from the date of Confederation up to the Blst \)QQ,.^ 1878, after which, owing to the unsettled state of affairs between the Dominion and Provincial Gov- ernments, it remained nearly stationary until 1883, at which time the present Government accepted office. From this time there was again a gradual increase until the revenue, which in 1882 amounted to $402,100.27, has now, at the close of the fiscal year 1885, reached the snug sum of $600,- 000, being an increase of $200,000, under the able adminis- tration 01 the present Government. Now, sir, there may be a question, and no doubt there is, in the minds of our friends opposite at least, as to whether the present Government is entitled to the full credit ot this improved state of affiurs or not. For my own part, I am not inclined to be selfish and am willing to give credit to whom credit is due and believing that it is not for finite minds to decide positively and unmistakeably in regard to many of the affairs of life, I don't think it would be wise to pursue an arbitrary course in our endeavor to arrive at a reasonable and satisfactory conclusion. But we may look at the effect and endeavor to trace it back to what appears M If i| l\ 12 at least to be the natural cause. Now it cannot be denied that for four years preceding the present administration the revenue of the Province remained nearly stationary, and this, notwithstanding the work on the railway was being vigorously pushed forward on the mainland, at least, during a great part of the time. Neither can it be denied that from the time the present Government accepted office our revenue has been increa^in^ from year to year, until for tjie year ended June 30th, 1885, it had amounted to fully $600,- 000, being an increase of at least fifty per cent, within the time mentioned. This being true there is but one of two views that we can take of the question, or, at most, take up our position somewhere between the two. Either the Gov- ernment were fortunate in accepting office at the time they did, or the country was fortunate in demanding a change at that particular time The old "Fight Canada Policy' had proved a failure, and whatever our position from the stand- point of justice may have been, in our struggles with (^an- ada we were being, worsted every time. Under these cir- cumstances it became necessary that we should adopt a new and difterent policy and although the result has not been as satisfactory as we could wish, owing to our inability to grapple successfully with the Chinyse evil for the time being, I don't think there is a sensible man in the Pro- vince if he were to speak his mind candidly and unbiased by political prejudice, who will say that the Province has not been improving during the past four years and that the changes produced by the eftbrts of this government have not been productive of beneficial results. Undoubtedly this is 80 — at least so far as the human mind can judge. This is not an age of prophecy, or, rather, I may say of genuine prophets. People attach but little importance to the blind and unsupported mutterings of self-interested theorists, and hence it is all moonshine to talk about what might have been the result of some action that never did and never could take place. The past cannot be re-called, neither can the future be foretold. "We may speculate on the past and make the best possible use of the present. We can form an opinion as to a certain cause whether the effect has been good or evil, but we. cannot tell what would have been the effect of a continuation of the policy of the former govern- ment, and unless it can be shown that the policy of the present government has been productive of injurious effects; there is no reason to suppose that a different policy, con- trolled by diflerent men, would have produced a more happy state of adSairs. Unless it can be. shown that our revenue has 18 fallen off, that our population is decreasing, that business generally is in a state of stagnation, that we are not in a position to provide employment to an increased number of skilled and unskilled laborers, that the resources of the country, agricultural and otherwise, are not being develop- ed, and that things generally have been neglected, I think it will be a difficult thing to convince the public that the business of the country has fallen into the hands of incom- petent men, as some of our adversaries have disingenuously but vainly tried to make it appear. But, if on the contrary, it can be and is, shown by the official returns, that the revenue has increased at least fifty per cent., that our population has been gradually increas- ing, the business of the country fairly prosperous, that at least two and I don't know but four persons are employed where there was not more than one four years ago, and that the resources of the country, agricultural and otherwise, are being developed as rapidly as circumstances will admit, then I think the Government have a right to expect the support of this House and the good will and confidence of the coun- try; and the fact that the Government do possess the good will and confidence of all right-minded people, not only af- fords the best posisible evidence that the present administra- tion has been a prosperous and successful one to the f^ountry, but is most gratifying to the Government, I assure you; and, notwithstanding the lack of appreciation on the part of oiir disconsolate friends, both in and out of the House, I believe that the country is safe, and that it will continue to prosper under the wise policy otthe present Government, supported as it is by a large majority of the people's representatives. Since Confederation, authority has been obtained by gov- ernment to issue debentures to the amount of ^1,888,000. And in addition to this, other means were provided by which the government were authorized to obtain the sum of $945,878.97, this latter being a capitalization of a certain portion ol the Dominion Subsidy and extending the power of government to borrow, within the time mentioned, to $2,8.53,878.97. The total amount of debentures issued since Confederation, was $1,176,000.00. Interest has been re- ceived on special deposits to the amount ot $29,706.89; also, from, investments of Sinking Fund, $19,878.72. Capital thdrawn from our Dominion five per cent, stock, $389,150. Kefund and cash received from the Dominion Government at various limes on account of dock, $432,172.88; and in do- *H [■W-', ■----'— '-^^-^^^MWil 14 posita at various times, ^52,781.43; while from ordinary re- venue the sum of $5,719,985.41, has been received, making the total receipts of the Province from all sources during the fourteen years of Confederatiou, $7,769,675.33. •i ^1 m w 11 Perhaps the $432,172.88 refund, and cash received at va- rious times on account of dock construction, ought not to be tal n into account in this statement, seeing simply that it was an advance, so to speak, to the Dominion Govern- ment for the time being, at least a great portion of it, and wa originally included in the receipts under the head of Ordinary Revenue. Deducting this amount, then, from the gross receipts of the Province, we find the net or actual receipts to have been $7,337,502.45 during the time mentioned. I have before stated that the principal source of our revenue is the Dom- inion subsidy, which, except in the year 1878, up to the time the present government accepted office, comprised con- siderably more than one half of the ordinary revenue of the Province. It now constitutes about one third of our re- ceipts, and may be regarded as a fixed sum which has un- dergone but little change since Confederation. In fact it has remained permanent or nearly so during the past nine years, with one exception, to which I shall presently allude. As you are aware the Dominion subsidy is made up of four distinct and separate items: First, the annual payment ofin- terest at five per cent on the difference between the actual and allowed debt of the Province at the date of Union; second, the amount allowed by the Dominion in support of our Government and Leginlature; third, the grunt per capita of our population; and fourth, for lands conveyed to the Dominion government in trust for railway purposed; the whole amounting to $214,000 annually, and representing a capital at the date of Union of $4,280,000. The last three items' of the subsidy have undergone no change from the beginning; but the first has never stood at the same figure at any time for a lonii;('r period than two years. There have always been little readjustments of ac- counts between the Dominion and Provincial governments; small sums in connection with matters that were not brought to account at the time of Confederation, together with other little accounts for and against the Province, that have arisep from time to time in connection with the finan- cial transactions between the two governments. These have / '. * 15 all been brought to account and properly balanced from year to year, as they presented themselves, in connection with that part of the Dominion subsidy, being five per cent, interest on the ditference between the actual ftn-\ al- lowed debt of the Province. This accounts, at least partially, tor the various discrepancies that appear from time to time in that part of our revenue constituting this particular item of the Dominion subsidy. But this is not all. There were two events which, more than all others, produced a marked effect in this particular item of our revenue. The first took place on the 28rd of May, 1873. It will be recollected that the Provinces ol Ontario and Quebec entered the Dominion with a supposed debt of ^62,- 500,000 conjointly; but it was afterwards ascertained that instead of $62,600,000, it was in reality $73,000,000, and as Canadahad become responsible lor the payment of the total debts of all the Provinces, it became necessary that a read- justment should be made, and accordingl} an act was passed by the Dominion Parliament relieving the said Provinces of Ontario and Quebec from the aforesaid additional charge of 10,000,000 and odd dollars, and at the same time it became necessary in order to compensate the other Provinces for this addition to the general debt of Canada, that they should be allowed an additional increase to their debt in a propor- tionate amount. This entitled British Columbia to an addi- tion of $280,084.00 to her allowed debt, and increased our capital from $4,280,000 to $4,560,000 yielding an annual revenue of $228,000.00. About this time the Government of the day being hard pressed by demands for public improvements that came pouring into them from the different districts, conceived the idea of instituting a loan. Now it so happened that Sir Leonard Tilley was Minister of Finance for the Dominion at that time and he suggested that the Dominion would be willing to advance such sums of money from time to time as might be required for public improvements, the whole not to exceed the difference between the actual debt and the allovved debt of the Province which was at that time $946,- 878.97 the interest to cease from the date of such payments, and the amounts so paid to be charged against the difference of the debts. This arrangement was favourably entertained by both (jQvernments, and on March 2nd, 1884, an Act was jii rri- I H^^ ;^:'l 4 if 10 passed by the local Legislature, and on May the 26th, in the same year, by the Dominion Parliament, for the purpose of carrying this scheme into effect. In 1875, after a volum- inous correspondence between the two Governments on the subject, the sum of ^339,150 was advanced to the Province. A part of this money, viz., $150,000 was advanced by the Dominion apparently with the understanding and determin- ation that it should be charged against the subsidies in the following year. This gave rise to mucii dissatisfaction in this Province and a strong opposition was instituted against the then Government, and in 1876 it culminated in their de- feat. From some cause, I know not what, the Dominion Government did not persist in their determination to deduct this amount from the subsidies, and the whole amount, viz.: $339,150 was eventually charged against the debt of the Province, reducing our capital from $4,560,000 to $4,200,- 000 or thereabout, at which figure it remained until the Ist of July, 1884, when a slight increase took place, which was brought about as follows : In 1873, when a general readjustment of the debts of the Province was made, and which readjustment entitled us to an increase in our debt of $280,01^4, interest should have been allowed on this amount from the date of Union, whereas it was not allowed, or rather, not paid, until the lat of July, 1873, or two years afterwards. The Provinces of Ontario and Quebec occupied the same position in this respect. The increase to their debt, like our own, was only allowed from July 1st, 1873, whereas it should have been allowed from the 1st of July, 1867, that being the date of the union of those Provinces. The Province of Ontario was, I believe, the first to take this matter in hand and bring it to the attention of the Dominion Government, and the result was that in 1884 an Act was passed by the Dominion Parliament recognizing this additional claim. This was seventeen years after the date of Confederation. And the Bill provided that the amounts by which the yearly subsidy was increased by the Act of 1873, to Ontario and Quebec jointly should be calculated as if such increase had been allowed from July the Ist, 1867, and the total amounts of the payments which in that case would have been made from July 1st, 1867, to Jan. Ist, 1873, with interest at 5 per cent, up to July 1st, 1884, should be deem- ed capital owing to those Provinces. This settlement with 17 Ontario and Quebec increased the general debt of Canada $6,397,503.13, and to compensate the other rrovinces for thiB additional increase it was agreed that their capital should be increased in like proportion. This gave us an additional increase of $83,107.88 to our allowed debt and raised our capital from ^,200,000 to $4,^^83,000 at which figure it has stood since the Ist of July, 1881. A change of Government brought a change of ideas, or perhaps, more properl_y speaking, I should say a change of ideas brought a change oi 50vernraent. Be this as it may, heavy contracts had been let. involving the payment of a large sum of money. And it was also thought expedient that the floating debt of the Province should be consoli- dated. The funds in the Treasury were low and Canada refused to advance any further money on account of the debt, and hence, it became necessary to seek relief from another quarter. The Government obtained authority to issue debentures to the value of $727,600. These were negotiated at the City of Loudon, in England, and are still a charge against the Province. I have before said the total amount of debentures issued since Confederation waa $1,176,000. The total redemptions within the period men- tioned were $428,500, leaving a balance still unpaid, and to be met, of $747,500. $20,000 of this amount consists of de- bentures issued under the British Columbia Loan Act, 1874, and is bearing interest at the rate of 7 per cent, per annum. This amount is not due until the 1st of May, 1899. Both interest and principal are payable at the City of Victoria. The balance, viz: — $727,500, consists of debenturesdssued under the British Columbia Loan Act, 1877, and is bearing interest at the rate of six per cent, per annum, and the whole, both interest and principal, is payable at the City of London in England, and is redeemable on the 1st day of July, 1907. The Sinking Fund yearly accumulating to meet the aforesaid debentures has now reached the sum of $139,- 425.92, so that in reality the actual debt of the Province underthis head is only $608,074.08. One part of the Sinking ^Fund viz.: That under the British Columbia Loan Act, 1874, $4,370.36, is deposited at the Bank of British Columbia, and is drawing interest at the rate of four per cent, per annum. The other, namely, that in connection with the British Columbia Loan Act 1877, $135,066.66, has been in- vested in separate amounts by the trustees, in Canada regis- tered Bonds and Canada and Australia' debentures, and lb ff-" 18 m 9-i 3.^ I; J) I. fl •i Ir.ili imr ' until Jnno 30th 1885, was drawing interest at the rates of 3 J, 4 and 5 per cent. On the 30th Juno, 1885, bonds to the amount of $14,000 that had been invested at five per cent, woio sold at a jireiMium ot $253.10, and re-invested in Can- ada lour per cent, stock so that now this part of the Sinking Fund is drawing interest at the rates of 3J and 4 per cent. — the Hule of the above stock being occasioned by the Donjinion calling in tlieir 5 per cent, bonds. Tiie total debt of the rroviuce on the 30th June was, as before stated, $608,074.08. The receipts from land sales occupy the second place in the scale of our revenue, and for the year ended June 30th, IHa.*), amounted to nearly $200,000, closely rivalling even the subsidy itself. The exact amount was $174,679.41. In 1872 the receipts under this head were only $4,ti69.22, but from this time there was a gradual increase until 1H78, wlion they amounted to fully $40,000, after which they fell to about $17,000 in 1881. In 1883 they again rose to $26,000. But it was during the last two years that the receipts from land sales had increased upwards of five hundred per cent. Of course, this fact affords tie best possible evidence that the country is being rapidly filled up with that class of settlers who contribute so much to the hajtpiness and prosperity of the general community and without which there would little progress in the world. Nothing Bpeaks hetter for a country or its government than to see numerous agricultural pioneers seeking for and obtaining a permanent settlement upon the soil, erecting comfortai)le homes for themselves and others who may follow, introducing new industries, cultured refinement and general civilization in remote districts of the Province. This is being done as rajddly as possible considering the difficulties that have to be encountered in a country covering such a vast area and so little known as the Province of British Columbia. There have been no very distinct variations in the receipts from many of our miscellaneous revenues, such ae those those from land revenue (exclusive of land sales), free ni'iiers' certificates, mining receipts, general etc. All are, of ^ course, sulyectto more or less fluctuation, but it would not be profitable to occupy the time of the House in dealing with those which may be regarded as being of minor impor- tance. I shall, however, refer to those that have undergone material changes, and endeavor to point out briefly the varioaa causes which led to the same. I shall first call wn. 19 your attention to the receipts under the head of licenBes. lu 1872 the receipt« from this quarter were $44,110. Since then they had been gradually growing l-ess until 1884, when they were reduced to $17,770. Now itdoosnot follow from this falling otf that there have been any fewer licenses granted, or that the demand for sirong drink is becoming less popular. II it did, the country, I think, would have good reason to congratulate itself, because there can be no doubt that many ot the evils which beset society may be traced directly or indirectly to the abuses of the liquor traffic; although it is quite possible, nay, it is absolntoly certain, that the eftbrts ot the diflerent Temperance organ- izations of late years have been crowned with wonderful, I may say unprecedented success. But for the present wo must look to another quarter for an explanation ol the fall- ing off of our reveime under the head of licenses. Prior to 1872, the receipts from licenses were paid into the Treasury and became a part of the consolidated revenue ol the Province. But !n that year an Act was passed repealing the Borough Ordinance, 1865, and granting to Municipal- ities authority to levy and collect the licenses for their own use, and the result was that the revenue from this quarter, which in 1872 amounted to $44,110 fell to $80,368 in 1873, and to $26,000 in 1874. Since then various Muni- cipalities have been instituted in difterent parts of the Province, and the result has been that the Provincial receipts from licenses had been reduced at a corresponding ratio, until, as before stated, they had fallen to $17,770 in 1884. In 1885, there was an increase of about twenty-five per cent., $22,215, being received tor licenses, showing that our population has increased at least one quarter, and that business in the outlying districts is again looking up. I shall now call your attention to the receipts under the head of marriage licenses, which, although, at no time amounting to any considerable sum, involve a most impor- tant feature in connection with the history and general progress of the country, and are therefore deserving of some litttle. consideration. In 1871 $947.50 was received under the head of Marriage Licenses. This was the first year of (confederation, or rather I should say, the first half year of Confederation. Miss Columbia had accepted the proffered hand of the Dominion, and the union thus happily formed, and which bid Mr to dispel the dark clouds of adversity i so that had been so long pending, seemed to open afresh the channels io the heart, and afford to congenial spirits a clear and easy passage to the sea of matrimony. The union of the Province with the Dominion, however, did not at first turn out as happily as desired. It was one ot those marry- in-haste and repent-at-leisure sort of unions, the bride and bridegroom were not as well acquainted with one another as they should have been. The one had grown to woman- hood ill a free-and-easy sort of way, possessing a nature and disposition which spring from an association with ocean, river, glen, and mountain peak. The other to manhood amidst trials and difficulties of no ordinary character, and which tend to make a people cautious. The one demanding a full end complete recognition of the marriage contract, so to speak, the other recognizing indispensable essentials only. This incompatibility of sentiment between the Province and the Dominion gave rise to serious domestic inharmony for the time being which bid fair to dissolve the union, and our young people, participating in the general discordant feel- ings which pervaded the public mind, the matrimonial market became dull in the extreme, and in 187 3 only the small sum of $135,00 was received for marriage licenses. I have always held that nearly all the difficulties of life originate through the want of a proper understanding, and this it was that caused so much trouble between the Prov- ince and the Dominion. It was only in 1884, when both had become better acquainted with one another and had begun to understand and respect each other's feelings and capabilities that a compromise was effected and peace, harmony and fraternal feeling again restored. Here again it would appear as though cupid had been watching the course of events. Our young people antici- pating tije good times coming again became harmonious, the matrimonial market, like the general business of the country began to boom- and in 1884 the receipt of $1,175 for marriage licenses gave further evidence of the increased prosperity of the country, and a determination on the part of the sexes to obey the divine command, to love one another, unite, multiply and replenish the earth. In 1878 the receipts from Real Property tax was upwards of twenty-five thousand dollars, but in that yerr an Act was passed exempting all lands in Municipalities from the opercitioQ of this tax from and after the 1st of January, 1879. tl b 01 w w al 2t This had the effect of reducinff the revenue under this head to about eleven thousand dollars in the following year, and from that time up to 1883 it remained nearly statiouarj'. In 1883-4 it rose to something more than fifteen thousand dol- lars, and for the fiscal year ended on the 30th of June, 1885, it amounted to $17,833.19 fully corroborating the position that I have been compelled to assume, namely, that the prosperity of the Province received a substantial impetus simultaneously with the acceptation of oflice by the present Government. The receipts from Road Tolls is the next item of our revenue that has undergone material changes. These in 1871 amounted to $28,622.92, but in 1872 an Act was passed to abolish the road tolls and permitting passengers and mer- chandise to pass over the roads of the Province free of charge, and the result was that not a single dollar was collected from this quarter for a period of three years, nearly four years thereafter. ' In 1876, the Government then in power came to the con- clusion that the abrogation of the Road Tolls at that partic- ular time was a premature act on the part of their predecessors and an Act was passed reinstating them, not their predecessors, but the road tolls. From this time for- ward the receipts from road tolls amounted to about $28,000 annually until 188I~2, when in consequence of the prose- cution of the work on the Canadian Pacific Railway the trade of the Province received an additional stimulus and the receipts from road tolls rose to $42,000. About this time a portion of the railway leading from Yale towards the interior having been completed, was thrown open for traffic, and notwithstanding an Act was passed in 1884 providing for the collection of the tolls at Yale instead of at Alexandria Bridge, the receipts gradually fell ofl^", as the goods forwarded by rail were of course not subject to this charge. In 1885 an Act was passed to abolish the road tolls between Yale and Clinton for two reasons. First, because the great bulk of the goods for the interior passed over the railway, and it was generally thought the tolls on this part of the road would not amount to much more than would be required to pay the cost of collections. The effect was, however, to reduce the receipts under this head from $29,000 in 1884 to $22,000 in 1885. A^ain, our friends in Cariboo, and those in some other parts of the mainland have always felt the impositioa of tolls on the Trunk Road, 22 while nil, or nearly all, the roads in the other parts of the IVovinco were entirely free, to be a sort of one-aided ntiiiir, a distinction having no status from the standpoint of justice, and one calculated to work exceptionally prejudici- ally to their interests. No doubt a great deal may be said in supjiort of the position assumed by them. Indeed, it would he difficult to assign a reason beyond that of expediency, other things being equal, why persons liv- ing and doing business inone part of the country should be required to pay tor the use of the roads while those in other farts pny nothing, Cfipecially as the roads in all parts of the 'rovince, outside of municipalities, are constructed and maintained at the cost ot the consolidated revr 'le, and as all classes in all parts of the country derive an lual benefit from our J*rovincial roads. Good roads in the itlying dis- tricts are an encouragement to settlers to take up and culti- vate the agricultural lands. They are, also, an indispensible necessity in the devoloptnent of a new country, as affording easy access to the large centers of population where the best markets are found for the disposition of the products of the soil. The niiner is enabled to btanch out into the vari- ous remote and unexplored regions ol the country in quest of new fields in which to prosecute his researches for the precious metals. These, in return, contribute to the general growth and prosperity oi the country, and while the farmer, the miner and trader in the interior of the Province are facilitated in their efforts to acquire wealth and happiness through the instrumentality ot good roads, the manufacturer, the merchant, the trader and the banker, are equally bene- fitted by the development of new industries and the increase of business consequent thereupon. The main trunk road and trails in the u^)per country contribute to the trade of Victoria, New Westminster and Nanairao and are there- fore as much benefit to these places as they are to Cariboo, Cassiar and the intervening sections of country along their lines. It is true the trunk road cost nearly two milhons of dollars in its construction and, until recently, has required nearly ^40,000 a year to keep it in an effective state of re- ])air. Now it may be said if this heavy outlay in construc- tion had not been made, the Province would have entered confederation tree from debt and that we would be receiving fully ^50,000 a year more by the way of additional subsidy, that is now lost to the Province through the payment of interest on our public debt. AVell, this may be so, but we must also bear in mind that the completion of the Canadian Puciiic liailway has doue away with the necessity of so much 23 oxponclitiire for repairs in tlu; lulurc nnrl reduced tlioroad tolls to about $8,000 a year. Mesidcs, it \h just possible that tbcro would have been no Provinco had there been no trunk road. And further, I cannot help thinking that this road, as well as all others, is of eciual benclit to all classes and all parts of the country and that the expenses connected with it should be borne fairly and equitably by all. Now it may l>o said that a reduction of taxation in one direction, and when a re- duction of the revenue is barely adniissil)lo, simply means increased taxation elsewhere, and wliile admitting that the rcvemio has increased fully fitly per cent, during the past four years, the requirements ot the Province have morethau kept pace with the increase and, hence, that it would be im- politic to abolish the road tolls at the present time. Well, iill that I have got to say is, the imposition of a one-sided tax like the present road tolls is simply a gross injustice. The Government do not intend to increase taxation elsewhere but taking into consideration the reasons before stated, to- gether with the urgent request, I may say almost irrestiblo n.quest of their supporters on the mainland, and especially the first and second members for Cariboo, the Govertmient intend to abolish the road tolls altogether. This intention on the part of the Government was clearly foreshadowed by the Honorable my predecessor at the last meeting of Parliament and with the consent of the House it will be carried into efiect during the present session. The average receipts from Personal Property Tax, for the six and a half years from the date of its inceptioji to the 30th ot June, 1882, were twelve thousand se/en hundred and thirty-four dollars and seventy six cents. And during the past three years, fifteen thousand two hundred dollars and thirty-four cents, showing an increase of two thoUv^and five hundred dolllars per year under the present administration, 80 that, turn which way wo will, we see ouly iudicutiou of thrift and general advaucement. The Registry Fees have more than doubled since 1882, showing to what extent the government have been success- ful iu their efibrts to encourage and promote settlemeut. X 'I The Provincial Revenue Tax is the next and last item to which I shad refer as forming part of our revenue and then pass ou tJ a consideration ot the other side of the question, namely: the expenditure in connection with thQ aduiiuia- 24 tration of public affairs. As you are aware, the Provincial Revenue Tax was first coliected in Ji'76. The receipts during that year araounted to sixteen thousand one hundred and eighty-two dollars and seventeen cents. And there was a gradual increase from this source up to 1882, when they amounted to twenty-eight thousand nine hundred and twenty dollars. In 1883, at which time the present government accepted office, they were found to be forty-seven thousand six hundred and thirteen dollars. And for the fiscal year ended on the 30th June, 1885, they had reached the snug sum of sixty-four thousand and twenty-nine dollars. You are, of course, aware that the revenue under this head is derived from a per-capita tax of three dollars, and, hence, the amount received from this source in 1885, would indicate a population of twenty-one thousand male adults as agamst five thousand in 1876. It is true that a considerable amount of this money was paid by Chinamen who were employed upon the Dominion Public Works, but this fact would not fully account for the diflerence, and, hence the true inference is, that this increase in our revenue is but a natural outcome of the general growth and prosperity of the Province, and closely in keeping with recent progressive legislation. The annual expenditures of the Province tor ordinary ser- vices during the fourteen years of Confederation have been as follows: — Six months ended Slst Dec, 1871 $ 93,052.54 For the year ended Slst Dec, 1872 • 416,874.28 For the year ended Slst Dec, 1873 366,882.50 For the year ended Slat Dec, 1874 581,340,92 For the year ended Slat Dec, 1875 605,761.39 For the year ended 3l8t Dec, 1876 604,574.70 For the year ended 3l8t Dec, 1877 544,529.90 For the year ended Slat Dec, 1878 359,472.30 For six months ended 30th June, 1879 123,894.95 For the year ended COti. Tune, 1880 347,552.78 For the year ended 30th June, 1881 311,517.04 For the year ended 30th June, 1882 322,877.14 For the year ended 30th June, 1883 391,279.70 For the year ended 30th June, 1884 506,626.96 For the year ended 30th June, 1885 589,588.91 Total ...«6,166,826.01 In addition to this the follow' ig suras have been paid. First, on account of the Public Debt. Interest amounting to $434,043.46 Sinking Fund accumulating ; 120,770.36 Interest invested on account of Sinking Fund 19,176.37 Premiums and Exchange 3,003.41 Discounts and Oommissions 45,063.00 Bedemption of Debentures 428,600.00 The whole amounting to -^1,050,556.60, and showing that while a public debt may sometimes be an indispensable necessity, it is at all times an expensive luxury. If from this amount we deduct the Sinking Fund, the inter.est ac- cruing thereon and the value ot debentures redeemed, ?5t38,447.73, it will be easily seen that the sura of\$482,- 109.87, has been lost to the Province through the payment of interesl;, premiums, exchange, discounts and commissions on our public debt, the most of which has gone forever from the Province to enrich the mother country. The Kootenay royal commission cost the Province $ 984.47 Texada royal commission 1,645.18 Indian commission 16,235.02 which, by the way, I think should have been paid by the Dominion Government, as by the Terras ot Union Canada became liable for the expenditure connected with this branch of the Public service: Allcwan(!es $3,491.82 OflSce contingencies 2,938.60 Pensions and Gratuities 928,65 Deposits have been repaid in all amounting to $41,017.97; and on account of Dock construction ^396,287.65; the whole amounting to $463,529.26, and making the total ex- penditure of the Province tor all servioes during the four- teen years of confederation to July Ist, 1885, $7,679,911.87. 1 have before said that the total receipts of the Province during the same period were $7,769,feT5.33 being $>*9,763.- 46 in excess of the expenditure, which balance will have to be accounted for by the Department of the Treasury. Now if you will turn to the Balance Sheet of the Pro- vince as published on the 120th page of the Public Ac- counts that were placed in your hands in the early part of the present session, vou will find the following sums brought m ! B> V. 29 to account and to the credit of the Government on the 80 h June, 1^85. Dominion Government Savings Bank $ 418.95 Cache Creek hoarding School 1,9G8.13 Dominion Government 44 78 Corporation of Victoria 51(5.21 Government of Washington Territory 1,128 G2 Bank of B. 0. account current 28,141: 87 special deposit 50,000.00 Balance in hands of agents, London 553.1G Cash Balance at Treasury apd in hands of agents 18,735.20 Total $101,509.92 If we deduct from this tlie bahmce of the receipts in excess of the expouditare as before .stated $89,763,4(!, there will be an apparent overplus to (he credit of the gov- ernment of $11,746 46. This may apoear a little strange to the austute financiers of the Oppo.sirioi\, bnt the apparent anomaly is very easily explained. By the Terms ot Union it was agreed that all stocks, cash, bankers' balances, and security for money belonging to the I'rovince at the time ol the Union should become the property of Canada, and that Canada should become liable for the debts and liabil- ities of the Province. On th<'' l9tli of July, 1871, there was a cash balance at the bank a'ld in the hands of the various Crown Agents of the Province amoimting to $15,387.49. There was, also, a number of outstanding accounts against the Province, the amount of which could not be correctly ascertained at that time, .'^-y mutual understanding between the Dominion and Provincial Governments, it was agree 1 that the I'rovince should retain the aforesaid balance, settle the outstanding accounts and turn over the remaining balance, if any, to the JJominion Government. In accortl- ance with this understanding the I'rovince continued to pay the accounts from time to time as they were presented, and the amounts so paid were brought to account with the general expenditure of the Province, and are included in the sum of the expenditure as before stated. On the 2t'th of October, 187ii, after the liabilities referred to had been paid, there was a balance of $3,641,03 remaining to the credit of the Dominion Government, showing the sum of $11,746.46 to have been paid. These payments were made in the interest of the Dominion, and form no part ot the Provincial expenditure, and should not have been brought to account therewith. If, then, we deduct this sum from the total expenditure, as it appears in the Comparative Statement, or from the funds on baud at the Treasury at the 27 close of the last fiscal year, or add it to the receipts, ns shown in the Comparative iStatement, (for it must bo recol- lected that while the payments referred to were included in the statement of Provincial expenditures, the amount retained by the Province to meet such pajmients, does not appear in the Comparative Statement of Receipts), the Opposition can take their choice in this matter, but in either case it will balance the debit and credit accounts of the Province to Jie last fraction of a cent. It is an old saying that a chain is no stronger than its weakest link, which is true. And, by a parody of reasoning it necessarily follows that when the chain is itself pertcct, each individual link must be equally so. Now Sir, I have shown that the financial chain of the Province, stretching from the date of Confederation to the 30tli June, 1885, is perfect in every part. But, as statements have been made by the Opposition and their organs, leading the public to suppose there is a shortage in the last years accounts to the amount of $53,000, or in othei* words, that the Treasury has been robbed to that amount, becau^je this is the irn[)ression that has gone abroad, I shall take the liberty of looking a little more closely into this part of the question, and in doing so honorable members are respectfully invited to accompany me and bear witness to the facts. As I have had more to do with the finances during the period referred to, than any other, I very naturally feel a greater interest in knowing that instead of there being a shortage to the amount of $58,000, there is not so much as the fifty-lhiec thousandth part of a cent short. If honorable gentlemen will turn to the balance sheet tor the year ended June 30th, 1884, they will find the lollowing sums brought to account at the Treasury to the credit of the Government : o » Dominion Government Savings Bank $ 418.95 Cache Greek Boarding School 1.968.13 Bank of B. 0. account current 22,634.60 Dominion Government 44.78 Corporation City of Victoria 854.60 G 'vernment Washington Territory 1,128.62 Bank of B. C. special deposit 100,000.00 " " London 55S 16 Cash Balance at Treasury and in hands of Agents 24,620.71 Total 8152,223.55 I Oil Add to this the receipts from July Ist, 1884, to June 30th, 1885, as shown by the comparative statement, $602,797.49; 28 also, receipts from sale of island lands (sold in trust), $2,- 419,09, and from British Columbia Loan Trustees $94.94, and it wil' be easily seen that the total amount available for the year's services was §757,535.07. Now turn to the Balance Sheet for the year ended June 30th, 1885, and you will find the following sums brought to account to the credit of the Government at the Treasury: Dominion Government Savings Bank $ 418.95 Cache Creek Boarding School 1,968.13 Bank ol B. C. account current 28,144.87 Dominion Government 44.78 'Corporation City of Victoria 516.21 Government of Washington Territory 1,128.62 Bank of B. C. special deposit 50,000.00 « " London 553.16 Cash Balance at Treasury and in hands of Agents 18,735.20 Total $101,509.92 The total expenditure of the Province as shown by the comparative statement for the year ended June 30th, 1885, was $t)66,025.15 which, if added to the credits before re-* ferred to, will amount to $757,535.07, and shows a complete and perfect balance of the year's transactions. But lest this system of dealing with the Public Accounts may be of too intricate a character and cannot be comprehended by the astute financiers of the Opposition, I will, in order to simplify and bring it more directly within the reach of their under- standing, present the question from another standpoint. It will be seen by reference to the Balance Sheet for the year ended June .lOth, 1884, that there was an asset over liabili- ties of $1,996.95, or, in other words, after paying all liabili- ties to the 30th June, 1884, the sum of $1,996.95 was avail- able for the year's services beginning on the Istof July, 1884, and ending on the 30th June, 1885. The total re- ceipts from July Ist, 1884, to June 30th, 1885, as shown by the Treasurer's account, including $94.94, received on ac- count of the British Columbia Loan Trustees, were $600,- 493.55, making the total amount available for the year's services after squaring the accounts to the 30th June, 1881, as before stated, and beginning the fiscal year 1H85 with a clean sheet, $602,490.50. It will be lound by reference to the Treasurer's account that the total expenditure from July 1st, 1884, to June 30th, 1885, was $655,437.86, being an expenditure in excess of the amount available of $52,- 947.36. This would have been a deficit, in fact, if our assets had not been accumulating iu the meantime. But the £ftct ■'¥ 29 is our accumulated assets during the year were, first, on ac- count of the re-adjustment of the debt, $83,107.88. This may be regarded as an independent asset, seeing that it has no connection with and was not derived from the ordinary revenue; second, on account of the Sinking Fund, $19,336.83, and thi»d, cash on hand belonging to the British Columbia Loan Trustee account, $94.94, making the total assets ac- cumulated during the year $102,711.12. Had the receipts and expenditure been equal, there would have been an asset over liabilities at the close of the year of $104,698.07. But the expenditure exceeded the receipts $54,944.31, and reduced our assets over liabilities from $104,698.07, as before stated, to $49,763.76, as appears in the Balance Sheet for* the year ended June 30th, i886. Trusting this explanation may be satisfactory to the public and that honorable gentle- men opposite will be able to understand it, I pass on to a further consideration ol the question. The items under the head of Pensions and Gratuities have disappeared from the Public Accounts since 1873. The cost of the Civil Government, including that of the Admin- istration of Justice (sahies), has undergone many changes since Confederation. In 1872, this service cost the Govern- ment $101,!'35,85, and was the largest amount paid for salar- ies in any one year except in 18j?6. In 1873, the sum of $77,281,99 was paid for salaries, and was the smallest amount paid in any one year. In 1884, the sum of $96,240,73 was paid, and the cost of this service during intervening years has ranged between these figures, so that, upon the whole, there has bccu no very material increase until 1885, when it amounted to $114,739,94. Sv far as the expenditure under the head of Public Insti- tutions is concerned, although it has never been the same for any two years, the difference has not been of sufficient im- portance to demand a serious consideration. It is probable, however, that the large increase to our population, which it is only natural to expect in the future, will necessitate additional expenditure in providing the necessary accomoda- tion to those of our population who are mentally aiflicted, and whose misfortunes entitle them to every care and con- sideration which the capabilities of the Province can afford. The asylum for the insane must be maintained at all hazards, and touch as we may regret the necessity for such an institution in our country, it is our duty to contribute to its eupport liberally and cheerfully, and be ever ready to render 'I: m 80 to our distresRod fellow -beings that assistance which their misfortunes deniai d and into which they may have fallen through no fault of their own. In the cost of Administration of Justice (other than salar- ies) no material increase aj )ears to have taken place until 1884, when it reached 148,502.12 being $17,515.97 of an incrciise us compared to the cost for 1883. In 1885 it was not quite so much, being about $46,000. If we take the cost of this service, together with that of the Civil Government, including salaries for the year lSS4-5 as compared with the cost of these services ^-r 1882-o, we :'*ud there has been an increase of $39,129.35. Of course, this is very easily accounted for. The large increase to our population, as a result of progressive legis- lation, through which extensive public works have been in- stituted and the development of the country amplified and made permanent, has, as might be expected, compelled the Government to enlarge the machinery necessary for the pre- servation of peace and order. Nor is this all : Prior to 1873, Jurors were compelled to serve on criminal cases, and I believe on all others (except special jury cases) without any remuneration whatever. But in that year, an Act was passed authorizing the payment of $1 50 to every person actually serving upon any jury upon the trial of any criminal cause in any Court of Assize, Oyer and Terminer and General Gaol Delivery. This, of course, did not amount to much, and it was gen- erally tlionght to be unfair to those, who, although sum- moned, were not called upon to serve. Besides, the system then in vogue was a sort of one-sided institution which bore heavily and unequally on a certain number whose services for the sake of convenience, or for the want of a more suit- able Act, M'ere brought into successive requisition, ^''hile others escajied from jury duty altogether. In 1883, however, the present Government, recognizing this unsatisfactory state of affairs, and the unequal operation of the Act, and being desirous, so tar as possible, to mete out equal justice to all classes and parts of the community, introduced and passed an Act, entitling every petit juror residing west of the Cascade Range of Moutaius, and actu- 81 ally attending any Court of Assize, to receive the sum of $1.50 for each flay ho attends such Court, and euat of the Cascadesj, $2.00 for each day's attendance. This Act received the assent of His Honor the Lieutenant- Governor, on the l'2th 00 was placed upon the estimntos for school purposes for the fiscal year ending on the 30th June, IfeStJ, and the probability is that the expenditure will exceed the appropriation, and taking our population at 60,000, which I think is a fair and reasouiible figure, it will be seen that education in British Columbia costs the government ^2 per head for every man, woman and child in the Province, as against 27 cents per head in Ontario, or nearly eight times as much. Again, there are 5,614 schools, including High schools, Colleges, Universities, etc., in the Province of Ontario. The , Provincial appropriation in aid of these schools in 18f 3 was $513,347.66, as before stated, so that the cost f»er school to that Government did not exceed the sum of $91.41, a very trifling matter so far as the Government of the Province is concerned. In British Columbia the expenditure for educa- tional purposes during the year 1883-1884 was $68,953.67, tho number of Public schools, 67, being a cost to the Govern- ment of $1,209.71 for each and every public school ol tho Province, or a little more than thirteen times as much as that paid by Ontario. There were employed under the school system of Ontario 7,655 teachers during the year 1^83, at an average cost of $67.00 each to that Government, while the Government of British Columbia paid to the 76 teachers employed in the public schools of this Province the average sum of $906.00 each, or 13 times as much as that paid by tho Govorumont of tho former Province. The total number of children attending school in Ontario was 464,369, at an annual cost to the Government of one dollar and ton cents for each pupil, while the Govoromeut 84 of British Columbia paid not less than 320.14 for each pupil in aggregate enrollment or eighteen times as much as that paid by the Govornmeut of Ontario. The daily average attendance of pupils at the Ontario schools was 215,561 at an average cost of$2.38 each to that Government, while the cost per pupil for those in daily average attendance in British Columbia was 938.14 or about sixteen times as much as that paid by the Government of Ontario. If, then, we strike a general avei 054.83 or $32,323.90 per year in favor of the present Administration, which I think is a very creditable shewing for the Government. But if we take the expenditure on Public Works daring the eleven years preceding the present administration, which is, perhaps, the proper find most satisfactory way of dealing with the question, and the only one, in fe,ct, that will give a correct exhibit of the expenditure on public •works by the present government, as compured with that by all former governments, we find the result still more favorable. The total expenditure on Public Works during the time mentioned was $2,327,199,92. ^'ow, if we deduct from this amount the net receipts from extraordinary revenue, or what perhapsmight be designated capital, viz : $755,131.31 , we find the average annual expenditure from ordinary revenue to have been $142,915.3-3 or $41,139.60 per year less than the expenditure on these works of public utility by the present government. I 39 The estimated fexpenditure for all services fol* the yeat ended June 80th, 1885, was $6h3,-291,21. The actual expenditure vS56,025,15, being about $27,000 less than the amount estimated. Of course, there have always been, and always will be, certain unforeseen circumstances and developments in the future, that cannot be accurately pro- vided for in advance, and, hence there will always be more or less discrepancies between the estimated and the actual expenditures, as also between the estimated and the actual receipts. My predecessor was, therefore, close enough in hie estimates for all practical purposes, and the result shows that a due regard for e(fionomy consistent with the best interests of the public welfare, has been the constant aim of the present government. The estimated revenue for 1885, was $620,895.66. The actual revenue was $602,797.49 beinff $17,598.17 less than the amount estimated, so that the aittereuee between the estimated revenue and the actual receipts will bear a like proportion to the latter, that the difference between the estimated expenditure and the actual expenditure does to the former, and showing that a harmonious uniformity of action in dealing with every branch of the public service, couservating the public welfare, elevating and strengthen- ing the whole structure ot our united interests, thereby minimizing aid equalizing tension in every part, has been a distinguishing feature of the present regime . It will be leen by the estimate of revenue and receipts for 18!<5, under the head, "Dominion of Canada — Annual Payment of Interest at 5 per Cent.," that the amount esti- mated was $24,995.66, whereas the actual amount received was $29,151.06, or $1,155.40 more than was estimated. Now the question may be asked, why was this increase omitted from the estimates? and if so, the answer is plain and simple. In fact, the- ciroumatauce has already been partly accounted for I explaino'i to you that in 18 -s^ an Act was passed by thcDorainiois. Parlian.ent, antedating, so to speak, at least so far as this Province w concerned, the operation of the Act of 1873 to July Ist 1871. The Act of l.'^7 ^ you will recollect, increased our allowed debt $-80,081,* but interest, on this amount was only aUowed from July the let in that year. The Act of IS84, provided that it should be allowed from July Ist, 1871, and the interest on the difference between what we received in l'i73 and what we would have received in the meantime if the increase had been allowed dtfl J 0,3 40 from tho date ofUalon, or in other words, the interest on $280,084, for two years, compounded from July the Ist, 1873, to July the Ist, 1884, raised our capital as formerly stilted, $83,107.88, and the discrepancy noticed between the estimated and actual receipts under this head for 1885, is simply tho interest on this additional increase to our allowed debt. This, you may say, is a very good explanation of th,' origin of this additioual increase, but why was it not p'-60'. :^8. f, . till. . June 30th, 1884 5.