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 _^ -^IPPLIED \M/\f3E Inc 
 
 ^^ 1653 Eost Mam Street 
 
 S^5 Rocheatef. New York U609 USA 
 
 '^S (716) 482 - OJOO - Phone 
 
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C A.]Sr^D^ 
 
 BUDGET SPEECH 
 
 DEUVERED HY 
 
 HON. WILLIAM S. FIELDING, M.R 
 
 MINISTER OF FINANCE 
 
 IN THE 
 
 HOUSE OF COMMONS 
 
 FRIDAY, MARCH 14 
 1901 
 
 OTTAWA 
 PRINTED BY S. E. DAWSON. PRINTER TO THE KINGN 
 EXCELLENT MAJESTY 
 1901 
 
 S MOST 
 
COXTE>'TS. 
 
 Ki-cal year 1«99-1'J00 -Kevenue 
 
 Exiwnditure and Surplus. 
 
 Capital Exi)enditure.. 
 
 " I)ecrea8e of Debt 
 
 19001!)01-I.:«tiinat«d Revenue 
 
 Expenditure and Surplus. . 
 
 Cai.ital Expenditure, Ac 
 
 Statement of Net Debt, 18!»C-li100 
 
 Fiscal Year, 1!(0'.-1902. 
 
 Canada's Trade ' 
 
 Trade with Great BriUin 
 
 Exports— Produce of Canada 
 
 Rate of Taxation -Customs 
 
 Statistics of Business Progress 
 
 Dominion Xote Circulation 
 
 Circulation -Notes of Chartered Banks 
 
 Savings Bank Deposits 
 
 Deposits in Chartered Banks 
 
 ExiKJrts of Produce of Canada 
 
 ImiJorts for Home Consumption 
 ■i'ukon Territory 
 
 South Africa Contingento and Halifax Garrison .. . 
 
 (!anadian Securities and Trustee List 
 
 Bounties on Iron and Steel.. . 
 
 Tariflf-Beet Hoot Sugar Industry 
 
 {•referential Tariff.. 
 
 I'AiiK. 
 
 6 
 
 r; 
 
 8 
 « 
 ,S 
 !) 
 !t 
 10 
 11 
 11 
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 l.i 
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BUDGET SPEECH 
 
 DELIVEREr) BY 
 
 HON. AVrLLIAM S. FIELDING, M.P. 
 
 .MIXI8TKR OF FINANCE 
 
 IN THE 
 
 HOUSE OF COMMONS, FRIDAY. MARCH 14, 1001 
 
 Tbf MINISTER OF FINANCE (Hon. W. 
 S. Fielding) moved that the House resolve 
 Itself Into Coriimlttee of the Whole to oon- 
 slder of the Ways and Means for raising 
 the Supply CO be granted to His Ma.esty. 
 
 He said : Mr. Speaker, for several years 
 ill succession, on occasions similar to this, 
 I have had the good fortune to be able to 
 congratulate the Hor.se and the country 
 upon periods of great and steadily Increas- 
 ing prosperity, i re.iolee to know that I 
 am at liberty to male a similar statement 
 to-day with respect n the affairs of Can- 
 ada for the past year. In almost every de- 
 partment of Industry In ^blch the Cana- 
 dian people are enga-ed there was a grati- 
 fying activity, ant', trade, commerce and 
 nianuiactures flourished. Hera and there, as 
 may always be expected i:i a country of 
 such vast extent ard ,-arled interests as 
 prevail in Canada, some local condition was 
 unfavourable, some drawback may have oc- 
 curred. But in summing up the affairs of the 
 country, we are able to describe the year as 
 one of unexampled prosperity. Prosperity 
 lu trade and manufactures brought pros- 
 perity to our national finances, and enabled 
 me at the close of the year to announce 
 results which it Is not too much to say 
 formed the most satisfactory financial state- 
 ment that ever fell to the lot of a Minister 
 of Finance to make In thi- Dominion of 
 Canada. At a time of very considerable 
 financial stringency, at a time, too, when 
 our expenditures were being conducted on 
 a very liberal scale, we found our revennea 
 
 sn generous that we were able to provide 
 I for all our needs without having resort to 
 fresh loans, or even to an Issue of treasury 
 bills. 
 
 FISCAL YEAR, 1S99-1'J00, REVE.VUE. 
 
 A glance at the receipts and expenditures 
 In comparison with the previous year wlU 
 show tliat there was a general iucreasa all 
 along the line. I have the honour to present 
 this statement : 
 
 1898-9. 
 
 Customs »25,316,841 
 
 ^'^clse 9,641,227 
 
 Post office 3,193,777 
 
 Miscellaneous .... 8,589,404 
 
 1S99-1900. Increase. 
 
 28,374,147 3,0!>7,30<! 
 
 9,S6S.07; 220.848 
 
 3,20.=;,535 11,758 
 
 9,582.237 992,833 
 
 $46,741,249 J51.029.994 14,288,745 
 
 It may be remembered that in speaking 
 of the prospects of the year In the budget 
 speech of la.st March, I expressed the opin- 
 ion that the receipts for the year would 
 puss the SoO.OOO.OOO mark : tlie (Igurps I 
 have Ju.st given will show that that antici- 
 pation was realized, the receipts of the 
 year haviug been over $51,000,000. The 
 chief Increase, as may be readily under- 
 stood, was in customs. That increase, to 
 some extent, was due to the Increased Im- 
 ports, and to some extent, no doubt, to the 
 higher values which prevailed. We have 
 increases In the post office which are very 
 gratifying. Of course It Is well known that 
 a year or two ago the post ottice revenues 
 fell off-not a matter of regret altogether, 
 because we know that that falling off was 
 caused by the very Important reform 
 brought about by my hon. colleague the 
 
Postmaster General, who Is now absent, 
 wherein be established a two-cent rate In- 
 stead of a three-cent mte, one of the moat 
 Important reforms In the Post OfDce De- 
 partm.iit, and one wblch I am sure the 
 country has fully appreciated. 
 
 If, for a time, therefore, our revenue from 
 that source fell off It would not be alto- 
 gether a cause for regret. I oni glad to be 
 able to say that we have now reached the 
 point where we shall be able to make com- 
 parisons with previous years under the 
 three-cent rate In January lust past we 
 had turned the corner In that respect. Up 
 to that date, our revenue was, under the 
 two-cent rate not quite so large as It was 
 under the three-cent rat'? ; but. In .January, 
 1001, under the two-ceut rate, the revenue 
 of the Post Office Department was $398,- 
 280, while the corresponding month of 
 January, tSuS, under the three-cent rate 
 the revenue was $3(58,941, showlnp; that 
 now, under the two-cent rate we are re- 
 ceiving more money lu the way of revenue 
 in tlie I'ost Olliee Dtpnrtuienl than \vc 
 formerly received when the three-cent rate 
 prevailed. Under the head of miscellaneous 
 revenues there is a considerable Increase, 
 the largest item being in respect to railways. 
 There is an Increase of $828)3-44 under that 
 head. It Is well to remember that, while 
 we are spending largely increased sums 
 upon the Intercolonial Railway In particu- 
 lar, we are also having largely increased 
 receipts, and It may be well In this ease 
 to maiic a comparison between 189^5 and 
 10(Xi. The revenue of the Intercolonial 
 Railway in 189(5. being the year ending the 
 30th June, was $2,0.'j7,()40. The revenue 
 for last year was .$4,5.'52,07] , showing an 
 increase In the receipts of the Intercolonial 
 Railway between 189(5 and 1900 of $1,594,- 
 431. My hon. friend the Minister of Rail- 
 ways and Canals (Mr. Blair) has to come 
 to the Uouse frequently for Increased ap- 
 propriations for this road, and it is well 
 that when he shall do so we shall keep 
 these facts in mind, and realize that owing 
 to the greater development of the Inter- 
 colonial Railway, and of the trade of the 
 country generally, the receipts of that im- 
 portant public work are now much larger 
 than they were before. Our total revenue 
 for the year which has passed was $51,- 
 029.094,02. 
 
 EXPENDITfRE AND SURPLUS. 1899-1900. 
 
 I Our total expenditure, chargeable to con- 
 soUdati'l fund account, that is our total 
 expenditure for what may be described as 
 
 I the ordinary purposes of government, was 
 
 I $42.97.j,27'.»..">l. siiDwiug a surplus on the 
 year's operations of no less a sum than 
 $8,054.714.,51. This surplus, Mr. Speaker, 
 was the largest that has ever been known 
 
 ' In the history of the Dominion of Canada. 
 I have prepared a statement showing the 
 surpluses and deficits for the last four 
 years, and the following are the figures : 
 
 In 1897 there was a deficit of $510,981.44, 
 in 1898 there was a surplus of $1,722,712.33, 
 lu 1S99 there was a surplus of $4,837,749, 
 and in 1900 there was the surplus that I 
 have ju.st mentioned of $8,054,714.51. Our 
 surpluses thus havu aggregated $14,015,- 
 17.-.8-J. Deduct .$519,981.44, the deficit for 
 the first year, which was, however, hardly 
 under our control, but we will pass that 
 point now,— ileduet tlie deficit of that year 
 from the surpluses of succeeding years, 
 and wp find that there has been a net sur- 
 plus for the four years as between the rev- 
 enue and the ordinary expenses of govern- 
 ment of $14.095,liH.40. 
 
 C.VPITAL EXPEN'DITURE, 4c., 1899-1900. 
 
 So far I iiave dealt with what we call 
 the e.\peuditufe on consolidated fund ac- 
 count, which represents the ordinary expen- 
 ses of governuient. There is, of course, 
 another class of expenditure which figures 
 in our account, which is commonly called 
 capital expenditure, including public works, 
 railways, railway subsidies and various 
 special items of an unusual character. 
 These expenditures for the year endetl June 
 30, 1900, were as follows :— 
 
 Intercolonial and Prii' e Edward 
 
 Island Ral' vays $3,308,SC"1 .31 
 
 Canals 2,639,564 Oi 
 
 Public works 1,089,827 29 
 
 Dominion lands 199,470 09 
 
 MlUtla 230,850 51 
 
 Canadian Paclflo Railway 236 11 
 
 Total $7,468,843 21 
 
 To this must be added for railway sub- 
 sidies, including $340,000 paid during that 
 year to the Crow's Nest Pass Railway, $725.- 
 720.35, and there is a further item to be 
 added, being the expenses of the South 
 African contingent and the Halifax garr!- 
 
•on. amou.'.ing to $l.W7.t523.-4. These 
 capital and gindal expense, for tLe year 
 amounted to $0,742,187.33. Now. with 
 hege large expenditures for the liberal 
 maintenance of tht: puJiic servicen. with 
 large expenditures for railways and pul.lic 
 works, and with special e.xpeudltures m 
 connection with the South African war. It 
 would not have been a matter of surprise 
 iubl. debt " '"""""^ '' '""*^-« ^^^ 
 
 DECREASK OK DEBT. 1803-1000. 
 
 th^.r;''"^ "''"■' ""-' ^'•^"'fy'nK' «ta.,.ment 
 that ue have provided for all these lar-e 
 
 expenditures, and that we have been abl. 
 uo ..nly to avoid lne.-e«sln« tl.o p,.bii,. jebt 
 
 nua..u,ali.v to r.:u,.,.,he public debt toth.; 
 ^r.S "'•'''•'■''^•^•''- 'll'^ net d-bt on Juno 
 
 at tl . .s,nn.. date in uhm, was ,.,..;.,, ,^3.- 
 m>.s.> Hhow.n,' a Ueorea.se or .•577:.,.a-».7l a. 
 already stated. " 
 
 Xow. that Is a very sratifyln;^ statement, 
 but .t IS one Which it is only possible to 
 make in very prosperous times. In only 
 two years prior to this, in the history of 
 t li.- Donnnion of ranada. was the Finance 
 
 rierf r , , ^" "'''^^ ^^^ statement that 
 hee h.a. been a reduction in the public 
 "ti't- Ihis occurred In the year 1871 
 wben my predecessor In office was Si; 
 Francis Ilinck.,, and It also occurred In 
 
 :?-•";'.'" ^'^ ^^•'"■•"■" Tilley was Minis- 
 ter of 1., nance, and when there was a re- 
 duction m the public debt of a very con- 
 B . .M-.ab,e sum. it ,s not therefore 7eaLn- 
 ale to expect that this reduction in the 
 public debt can frequently occur. I„ a 
 country like Canada, which after all is a 
 cotuparatively new country. i„ „ ,,ich there 
 Will always be demands for public works ' 
 and ■„ which there will bo expenditure^ 
 outside of what may be called the ordinary 
 e.xpenses of government. It is only reason- ' 
 ah e to stippose that we shall Incur obll- • 
 Rations which will necessitate occaslonallr ' 
 some addition to the public debt, r think ' 
 that If the iidd-tion to the public debt! 
 Should only be a mo.lerate o:,e w. sinll I 
 have no reason to complain. 
 
 ESTIMATED REVENUE, 1900-1901. 
 
 Turning now to the affairs of the current 
 year, which Is to close on the 30th June 
 
 10th March was I34.SM2.X77.M. an Incroa.. 
 «tIi7.i,3.or"^''""'""* '""^ '^« ''" <" 
 The customs revenue, which is always aa 
 1 cm o chief importance. remal.,s up To 
 date .substantially the same as .t was a year 
 aso. ..ad 1 do not expect that from this 
 tune forward we can expcta.y n.aterlul 
 increase ,„ that iten,. |„ ,,„„..., vs and 
 P^st oU ce and e.xcise there has been a con- 
 
 ttre"wm'r"^" ^'" "^- ^'•*-''-'^' '^^' 
 
 Mr. WAI.l.ACK. U.,w una h i„crcase in 
 the excise I 
 
 The Ml.VI.STKU UF FI.VA.V. i;. , y.^,.^ 
 not tne UKures at hand, but I will «|ve them 
 to tue hon. gentleman later, r ..„,..,.> that 
 the total revenue for the current year to 
 end on June .'iO next, will be r.L'.7.-....iNK^: ..r 
 an lncrea.se of $1.71.0.0.30 over the revenue 
 of the previous year. 
 
 ESTIMATED EXi.E.VDiTI.nE A.Vt, SLRPLUS 
 1900-U'Ol, 
 
 Corni,,. „ow to the expenditure account 
 
 -^7.Znr "" ^'°">'""'J''tcd fund, was $-7,- 
 .31.002.01. .so that, if we had an iucreas-d 
 a-Nen.,e. we have also had some increase in 
 expenditure as w.ll. We have sou.e supp e- 
 ■ucntary estimates yet to brin^ down for the 
 current yar which will, of course, swell 
 our existing appropriations. I estimate that 
 when the year's affairs are closed, in- 
 cluding these supplementary appropriations. 
 «e shall And the expenditure charKi.aMe to 
 ; > on.solidated fund amounting as near as 
 : may be to $4.U.X..00O. Witb an e.stin,ate,l 
 revenue of .?.-2.7.50.m and a probable ex- 
 pend.ture „f ?4(:.4(>M)00, I rea.'h ,he con- 
 clus.on that at the close of the present year 
 : ^^ •''^■•'" '"- ='We to show another surplus 
 , amountin- to ?(;,330.000. 
 
 Some hon. MEMBEKS. ri,.a,-. hear. 
 
 The MINISTER OF FIXAXCE. ThI, 
 Sir. Is not so larL'e n s.irn!„s .,„ ^,, .. .^ 
 the past year, but I think we shall all agree 
 that if the accounts when closed will .bow 
 a surplus as large as that, it mav l,e re- 
 garded as very satisfactory. 
 
riJ!(- 
 
 .< -N 
 
 P„Z%?i.«.iJ;':5i^d»5iiWMii^ .c.ii-%* 
 
 CAPITAL EXPENDITURE, 1900-1901. 
 
 The capital expenditure of the current j 
 year, to March 10, was 10,584,309.42. We j 
 have still to pay very considerable sums | 
 on accutiiit uf railway subsidies, canals, and 
 BO forth, and I estimate that the total ex- 
 penditure chargeable to capital for the cur- ' 
 rent year will reach $10,700,000. If we de- , 
 duot from this our Nurplus and our sinking 
 fund, I am of opinion that wo shall have , 
 to mnUe some addition to our public debt, 
 but I think It win be a very moderate one, 
 and will not exceed .•i;i.H(M),0<)0. That Is not 
 a very lar^e .sum, especially If we take Into | 
 consideration the additions to the public debt 
 lu days ({one by. j 
 
 j 
 DEBT STATKMENT, 1896-1900. 
 
 Our aduiinistratlou is t'onr years old, anil 
 as one naturally wishes to prepare a state- 
 ment toncernin;^ the period of his own gov- 
 eriiiiient. 1 liav»> prepared a statement of 
 tln! stale of the debt lu these four years. 
 
 Dol)t statement for four ye&rs. 
 
 Increase. Decrease. 
 
 1896-7 $.3,041,lUa 
 
 l»97-8 :;,417.S02 j 
 
 i>s9S-9 2.317,047 I 
 
 1S99-1900 $779,039 
 
 $7,77fi,0t2 J779,639 
 
 77n,t;39 
 
 Total lurreaae In four years.. $C. 996,373 
 .\vorago Increase for four 
 
 years 1,749.093 
 
 Avoragp Increase for 18 years, 
 
 1S7S-I896 6,563,075 
 
 Therefore, deductlntr the deciease, we find 
 tliat lu th»> four years we have •ncrea8e<l 
 the public debt to the extent of |(i,9"Jli,37;!. 
 The aveniKe Increjise for the four years Is 
 therefore .1!I,7^i),()i)3 per annum, airalnst an 
 average Increase in tlie previous eighteen 
 years of ^t^.'^hJ.!*"."! per annum. 
 
 FISCAL YEAR 1901-1902. 
 
 With reirard to the next tlscal year, berin- 
 ulUK on 1st July next, It is U)o soon for us to 
 attempt to m.'ike anytliliin like a close esti- 
 mate. 1 liave ;ilrenily submitted to parliament 
 "stiiiiatea on account of eonsol' latetl fund 
 amountliij,' to .$14,l01.',3l'3.r>0, and on capital 
 account amountlii}; to Jt!,21)((,r>00, uuiklng a 
 tot;'! of «r>0.3!).«. «!!•?..'!(!. Including both capital 
 and consolidated fund. We have supple- 
 mentary estimates yet to come which must 
 considerably add to these appropriations, 
 
 and there are special exp«»n<!)tares likely to 
 come upon us in the next yi^r of which we 
 must take note. We itball hare to provide, 
 in addition to eocslderabli! expenditures In 
 the usual way on railway milmldles and ao 
 forth, for a verj- consldprabte num In the 
 shape of bounties on Iron ,in<\ meel. Hither- 
 to these bounties have not In any one year 
 amounted to any very icn-nt num. but hon. 
 wntlemen are well awar<> from what we 
 h.ive seen In the public pre** nn well as from 
 the discussions In this IIoumc that the Iron 
 and steel Industry Ih m(»w beln« <hv 
 veloped on a very InrKc xcale and as 
 a conse(iuence of that we nhnll be called 
 upon to iiay a very <oin,ld<TnbIe sum as 
 bounty. It Is diffl, ult to form any definite 
 opinion as to what this will iimonnt to. We 
 know the ninount of bounty that Is 
 to be paid per ton, but the (luantlty 
 tha. will be produciMl U of coiirse a mat- 
 ter concerning' which we have no means 
 of knowing definitely. I assume, how- 
 ever, that we shall havi» »(» pay nest 
 year at least ."F1,(HX),0(H> Iti bounties on Iron 
 and steel, and I shJill iioi be surprised If 
 the sum has to be soniewiiat InrKcr. There- 
 fore, we shall ''e .»blii«-d to provide 
 for a very considerable exjiendlture for the 
 comlnu: year. .is to reverine, I do not 
 e.xpect that we can kwp on at the rate 
 of Increase which has been no marked dur- 
 luK the past three or four yearn. I think 
 we have probably now renched about the 
 crest of the wave of |)ru»(pi'rity. I do not 
 e.xpect that we shall liuve any serious re- 
 verses. I thiiil; the bui-iiieoH of Canada has 
 been deveioped during the past four or five 
 years uiwn very safe and noutid lines. 1 
 think there has been to a vi-ry larice e.\teut 
 an .-ibscnce of that Infiatlon wliicli Is so apt 
 to mark a period of Ko<id times. I am of 
 opinion tiiat the busineHs of the country as 
 a whole has been so carefully condticted and 
 Is on such a sound bauls that we are not 
 likely to suffer any serlonn reverses, but 1 
 do not t!ilnk It Is reastniable to e.vpect that 
 we can ;o on Increasing our business as 
 rapidly ai we have ■lurln;; ilie pnst few 
 years. What may happeti U that we niiiilit 
 sull'cr a check. Perhaps it mlitht be best 
 described as a perhxl of rent, not of goiiiK 
 backward, wheii Canada !!!ii- n jra-.jn^ ^!nt!' 
 will Kather new streuKth and advance aRaln 
 by leaps aiul bounds as nhe ],nn during tlie 
 past four years. 
 
 \y^^m^ 
 
to 
 
 CAN-ADAS TRADE. 
 
 I't"rlm„.s. r Will h.. p:n-,l„a.M it I gh,. 
 
 I'.' pas year. These facts can. of course 
 ;" '"''"'"*^^ ^y tLo«e Who take the tnl e 
 • Ko through the Trade and Navi,.uion 
 •■'"n.s. but they may be co„vo„ie„tlv 
 ;-'"t..I ,n a cx,ndeB«ed forn. in th 
 "•■'Iwt s„ot>eh. It was ind,.>d u (,.„„,. 
 Xear so raras the trade and eon : 
 
 01 the country i.s concerned. The a-'irre 
 gate foreign trade of the year m)0 tas 
 
 In tile nfpvi 
 Jf3l'I,li(il.J!;{ 
 
 Kate foreiicn tradi. of Of 
 
 '^V'Z\^; ^='"-'«»M Mines to all 
 
 cimntrle.s, lyoo 
 
 Exports, Canadian mlnea to all 
 
 countries. 1899 ... ^" 
 
 124.580,266 00 
 13..16,S,I.^>0 00 
 
 ?3Ni,M7...a „. u,e previ,A,. yea7u ;:;: 
 'llio incroa.se in the aggre 
 
 Increase In 1900 
 
 IC.\porti, Canadiuu flaUfi-ii's. loon 
 ISO'J 
 
 Increase In liioo Til^oTilT^ 
 
 Exports, Canadian forests, liiOn 
 ' 1>S9:/, 
 
 Increase in 1900 
 l^xports, animals and their pro- 
 Vm.'. "^ '"■'"'"ce of Can'ida. 
 
 Kxporls, .■itiii 
 
 $11,212,116 00 
 
 JlI.lO'i.os;:! 00 
 9.H09,662 00 
 
 l.':),uti;i,6GS 00 
 
 28.021,529 00 
 ♦ 1,C 12.1,19 00 
 
 Increa.se in 1900 
 
 ■';■;; «■ ''■"^>X™.";;",'/:;:;;;::, 
 
 :S «.,:r.,°;.,,rx.'°r', -""" - "--"■-'■a 
 
 one ve-,- onlv ni' t •"'"*'■ ^^''^ In K.'cporls, a«n,n,ltu 
 
 th. in *■ P'"'"'*'"^ adiuinlstratlon ^'°'^'""' "^ ^ana 
 
 the inciva.se was er $5!)..>.k>r^> ....,, ' ."' 
 
 riini;iN anil Ili.'lr ,,.,,. 
 
 J.">C.118,S07 on 
 
 iu.:r.',,i3o 00 
 
 I 9,103,677 00 
 
 ral products, the 
 
 f Canada, 1900 J'7 ■^ir. fiii.i nn 
 
 -•■■"■•ral pro.Iucts, the *-^'^''""'-">0 
 
 Increase In 1900 14 
 
 
 563,694 00 
 
 ..'';.."«';';;,■:;;■ "•"■» - • ■ ^ 
 
 The MIMSTEIt OF FI\A\rp v 
 "0... friends opposite have ife™ !bandl°T 
 ^v<' are still here. The fn "''""^'"'"1; 
 "..•.ry is interesting anJil/"""'^'"^' -»• 
 Aggregate foreign trade, 1900 
 
 1900 
 ^ISm'^' ™''""^''<='i"'e» ot Canada', 
 
 Increase In 1900 
 
 $14,22(.2.S7 00 
 
 11,706,707 00 
 
 t 2„';i7..^)S0 00 
 
 nictlvt 
 
 Increase In 1900 
 
 --■•IS: 
 
 » 59,856,023 00 i 
 
 imports entered for consumption, 
 
 '"iSoT". '"'^"«'» '"'•"consumption: *''^*'''**'^'21« "O 
 
 154,051,593 00 
 
 * 26,752^723^ 
 
 Increase In 1900 
 
 Hxports of produce of Canada, 
 
 TRADii: WITH GREAT BRITAIN. 
 In view of the discussions which h;i-,v oc 
 casio.ially faken place In the House with 
 regard to the increase of the iunHuts f,,,!, 
 Creat Hritain lor liome c.msuinption i h-ive 
 placed touciluT the tlgnres for a series „f 
 years : 
 
 nil $31.131,7:i7 
 
 189? 32.979.7.2 
 
 „o, 32.,W0,917 
 
 1900 37,0,;o,I2.1 
 
 """ 44,789,720 
 
 It Will be Observed, Sir. that the 1 
 
 1900 . " "' <-anaaa, " "— "- ".-.•.,,-„, t>!r. mat the imports 
 
 Kxport. .,f produce ■ of 'Can-ada *'"•*'-'■'«='«<' r"'.., ''"■'?' "*■'*■"" "'"^ '"'"" •''•'•Ii"l"K 
 '''' : 1,38.462 027 00 '^ ""'"' ''"^ """''' "' "'" •'^-''t >^oy. 
 
 lncrea.,e In 1900 ^.II^^^L^" j ornmeut. Including the preferential tanff, 
 
 „,„„,, ,^ I 32.180.3,?2 00 i "■"« 'KloPted. Tlnit decline was huine.ll 
 
 'ir^'reaf^S-lV' ""''^'^ , „ i i'^'"-^ '"•^"^'''"- """ ^-■' '"-t tin.e ."; the 
 
 ''jP°/'/'-''>« produce of Canada to ' •8-562.875 00 '"'P'Tts from Great Hritain h..gan to m- 
 
 Great Britain, 1899 ,5_„^_^^^ ^^ crease so that now, as cotnparcd with im 
 
 '"""- '- "»« T^i:^^^:^^ n'lT..^ cTnt " """""" '" '"" "•^'"" "'■ "'-"*' 
 
 "'unTted .C-^'^-'io^' ^«°''<'- to I confess thaf I har.IIv u...^ j ._^ 
 
immr. *ai^a»iiMr^v>^. ^^^'^ 
 
 10 
 
 from Great Britain and have theroby In- 
 jured our own manufactures. j 
 
 An hon. ME.MBEU. Hear, hear. ] 
 
 The MI.MSTEU OF FINANCE. Hear,! 
 hear, says my hon. friend opposite. But 
 at other times the arKument is that tlie pre- i 
 fereiitial tariff has made no difference In ' 
 the trade witli Great Britain, but that trade, 
 has inircaseil jrenerally and that tlie im- i 
 ports from Great Britain have only kept 
 pace with the general increase of business 
 ihroujiliout the world ; and wlien we have 
 contended, as we have, that the preferential 
 tariff lias l)een an Instrumi'nt in Increasing 
 the imports from Great Britain, we have 
 met the reply tiiat it has not Iiad that 
 effect at all, but tli.it the increased trade 
 with Great Britain has come about by 
 means .-iltosetlier irrespective of the pre- 
 ferential tarilT. 
 
 Mr. CL.VNCY. Will tlie hon. gentleman 
 give the increase of Imports from the United 
 Stales during the same period V 
 
 The MINISTER OF FINANCE. No, Mr. 
 
 Spealicr, but if it will help my lion, friend 
 verj' much. I will make an admission at 
 once. We import from the United States a 
 large quantity of the things we require, not 
 to plea!<e the United States, but to please our- 
 selves. We import tlie raw materials from 
 the United States, which go to make the 
 manufacturers of Canada prosperous. If 
 it be the policy of our hon. friends opposite 
 to keep out the raw materials which our 
 manufacturers reeiuire, that Is not the policy 
 of the present govciMment. 
 
 In this coiiiUH;tion perhaps I may be per- 
 mittet! to say a word as to a contention 
 wliich lias bieii advanced at timis, and 
 whicli lias found a suL'gestion this session 
 in the form of several questions by our 
 hon. friends opposite. The argument has 
 been used sometimes in the pulilic pi-ess. and 
 somotimi's on tlie floor oi this House, that 
 our preferential taritl is admitting a Ifl'-ge 
 quantity of foreign goods— goods wliich are 
 not British at all. Now, that is a fair mat- 
 ter for Investijratlon. It was no part of our 
 Intention to extend the benefits of the pre- 
 ferential tariff to these foreign nations. The 
 intention was that goods conilng irouiGrejit 
 Britain and purporting to be British goods 
 should lie liona fide products of Great Bri- 
 tain. But, of course, we have to remember 
 
 that Great Britain Imports great quantities 
 of raw materials a:id articles In tlie first 
 process of manufacture, and improves or 
 finishes them : and then she is tlie great 
 shipping mart for those goods throughout 
 the wide world ; and it has been suggested 
 '.)y a question i)ut by one of our 
 hon. friends opposite that perhaps we 
 ought to provide that the preferential tariff 
 sliall apply only to Bl Itisii i;oods. meaning 
 materials wtiicn are grown or produceil in 
 Great Britain and undergo all the pro- 
 cesses of manufacture In Great Britain. I 
 had to reply that such a policy would 
 anioniit to a practical repe;ii of tlie prefer- 
 ential tarilT. because Great Britain has to 
 imiMirl laiiie (luantities of materials out of 
 wliicli slie produces her manufacture I 
 goods. But it has been represented that the 
 preferential tariff is evaded, and tliat goods 
 of Belgian or Gorman or other foreign orl- 
 gitt are brought in under it. I want to say 
 that if any ini'orniatiou can be furnished by 
 any lion, gentleman in the House or by any 
 gentleman outside. It will help us to investi- 
 -:ite tliat matter: for we ii.-ive every desin* 
 to see that the Intefitlons of the preferential 
 tariff in that respect are carried out in good 
 faith. As to whether our present regnfa- 
 tion for distinguishing between British and 
 foreign goods is sufficient may also be a fair 
 matter of Inquiry. We think we have prob- 
 ably reached a sound conclusion in that re- 
 spect when we have determined that 25 per 
 cent of tlie value of an article being of Bri- 
 tish labour or Industry shall give it the 
 stamp of a British manufacture and en- 
 title it to the benefits of the preferen- 
 tial tariff. But while we th'nk we have 
 probaltly reached a sound conclusion in 
 that regard, I (luite admit tliat it is a 
 matter for investigation and iiniulry : 
 anil if any Information can be furnislieil 
 wliicli will lead us to believe that the 
 iiileiilion of tlie government with resp(>ct 
 to tlie preferential tarilf is being evaded, 
 eltlier through fraud on the part of Im- 
 porters or tlirough error In our own calcu- 
 lation as to the proper proportion of Britlsli 
 labour, we shall deem it to be our duty to 
 give the matter every consideration. 
 
 EXl'ORTS OF THE PRODUCE OF C.\NADA. 
 
 I have a statement liere. again taking ;i 
 period of four years for convenience, show 
 
Jor !l::/?':rf ''^*^'^ '-^''"•^e of CKHia 
 
 «'"•'' '*'■'""■ ■ ""'• "f »o ''"tr. the nian who 
 
 each class aiv sliown 
 follows : 
 
 Tlu« 
 
 J'tatouiciu is a.- 
 
 Statement showing Exports the Produce of Can 
 arJa for four year perioJs. ^*°- 
 
 Four years, 
 ISDu' to isac. 
 
 nX/es;:::::: »if',!;i?iJ« 
 
 Forest .... ,,;,'.;'■'■'■'■' 
 
 Animals and tiieir' pro- ^""■'^-■-"' 
 'luce and agricultural 
 
 Manufactures 'VJ4r;l\ 
 
 Miscellaneous "'"^rH'I 
 
 Com :;,„1 bullion "and -" 
 
 short, ep.rted 14.159,9-0 
 
 Four years, 
 
 1S97 to 1900. 
 
 J C.'J.TIO,.-';? 
 
 «,234.729 
 
 115,455,4ti5 
 
 Increase last four years ll^i;^^^ 
 
 RATE OP TAXAT(OX-CL-STO.MS. 
 
 •ulein enter if ".7h """ '"'''"'"f'^'' f'e corn 
 
 -«». «:l::,'■■r^;,';n:"^7; 
 •iltoiv,,,,,., |„ ,|,„ ,, ', , ""'"'" '""1 mnkc 
 
 -^^^■i";;; ';;":;-' r ~«'n;i;::"";:,;:; .r 
 — «:■■:,;; ;"• •■'" -«■'« "'.'."«r;;; 
 
 oper.. ion an,! I.ppn appJie,] „n rhe imnorf«. 
 onnst year, the ,ln,y levied wot,I,] ha ve .e" 
 lamer to the e.xtent of 93.2Uo "nn , 'f 
 
 -.s.jfu.oo,at„r..h:,;;:fLp:r:;;:;: 
 
 The (inestion of the rate of taxation u.i.ier -na naa heen In oner,.- 
 
 tl.e customs tariff has been frequently dis- "' '^'^^'"^ to the imports for 1 1 T 
 -^od. a.u, perhaps a word or two coneern- j j;- last year it wonid ha::';:^;;::;^;::^;;;;- 
 
 ing It, based upon the flffures of the n-ist 
 tbe imports for home consu.iiptlon and the 
 
 tlo^n^i ?''• "■' ^'" '"'^ ""'t tbe proi .r! 
 tlon ot dtity in mo on all imports for home 
 consumption was 18-28. and by the .Zl 
 statement for ,000, it was LVOS, maui ^ 
 
 i;;;;'"''^^' "^-■^■^'' ---eighth Of the wi'o^ 
 
 If that were to be taken as a correct state- 
 
 .nent Of the Whole matter, it would si; 
 tlat the .iifiference between the operation 
 of our tariff on the imports of la.t year 
 and that of the old tariff, were it still ^ 
 openanon. would have amounted to ?4. 
 
 from the pockets of the people .^.-j •")- -30 
 niore than was taken by the tiriff "V'h" 
 present government. e raim of the 
 
 STATISTICS OF ni'Sl.VK.SS PaOGUESS. 
 
 I ml a'lf ""' '"^ ""^ '''^ """^^ ^° l"""- "-itb 
 
 t.st « wlneh are likely to be tedious but 
 I which will bear study. 
 
 It will be remembered that on several oc- 
 
 p'pries of dia^-rams were publi.shed which 
 served to show very graphically the . ^ , 
 
 |;,-'Hlprogressoftheb„si„e.ssorthec;u,rtry 
 on. year to year, r have n„, done l.t 
 l^ut there is a point concerning which ^^J \T,l'- ''" '■'"'"""^ '" '"•">'> '' state 
 have occasionally had a discu.ssi.m Ik' e v ™ '''''"''''''' "" *"« *■"•"-'" o-" "-i es<= 
 regard to the imports of corn, and ^l^^lT^/^ "T ''""•-''■'•••' t-n would be 
 to qualify the statement I have just mad , ' '""","• ""^ ' '■"" 'iuito sure that in 
 •« the li«ht Of What has happcne, with 1"' ';'"vo"l™t form of a budget speech w- 
 spect to our trade In con, Under te nn ' '""'^ '" '"'^••' <<"'■'<• H-nres „'„,?., 
 
 ;;uin- corn was dutiable, and' ^^ „;:-;;;,.'■- an idea or the prog;;:;^:: 
 
 it was nnportant that the man hand ing i^ '' "'a^l.' ^nce confederation to the present 
 should di.scri..!i>intp ^ ,. .^...',^ ''I'lMy. and if 1 pan .in th.T ' i'*'»™c 
 
 the corn for hom^ <-on 'umptl; :'::h eh "vih j ! ''"'] ' "'" '" "^''^"'- '-teiid "o^^tr^^ 
 a duty and that in transit for expo at i Yirn ' '^""""""' ' ""'""^" ^" ""- ip^ 
 -...ch paid no duty. But when or^^: .'y^^-;-, :■;::- '^ --^e the sta.emeS 
 
ir.. wit . ^^^:M.s^^k^mBmm 
 
 t^i'-KM-.ri' 
 
 12 
 
 I 
 
 DOMINION NOTE CIRCULATION. 
 
 One measure of the growth of the bnsl- 
 Dees of the country Is commonly considered 
 the circulation of Dominion notes of ail de- 
 nominations. 
 
 Increase 
 Circulation over fifth Decrease 
 Dominion year under 
 nott's. previouB. fifth year. 
 
 Oct. ai, 1870 $ 7,450,334 
 
 1875 11,119,485 $3,669,151 
 
 1880 14,693,744 3,574,259 
 
 1885 18,072,355 3,378,611 
 
 1890 16,760,789 11,311,666 
 
 1895 22,893,259 6.132,470 
 
 1900 28,113,229 5,219,970 
 
 I have sriven the circulation of Dominion 
 notes generally, but the small notes of one 
 dollar and two dollars are supposed to be 
 perhaps the very b ^t standard by which to 
 Judge of the businesa of the country, because 
 as business increases there is an Increased 
 demand for these small notes. 
 
 Increase. 
 
 Circulation of Small Notes ($1 and |2) at the 
 dates named. 
 
 Oct. 31, 1875 »3,489,830 
 
 1880 3,999,452 ) 509,622 
 
 1885 5,602,514 1,603,062 
 
 1890 6,905,079 1,302,566 
 
 1895 7,312,917 407,838 
 
 1900 10,236,116 2,923,199 
 
 CIRCULATION OF NOTES OF CHARTERED 
 BANKS. 
 
 Total Circulation of the Notes of the Chartered 
 Banks of Canada at the dates named. 
 
 Increase Decrease 
 Notes over under 
 
 in fifth jear fifth year 
 
 CircuLition. previous, previous. 
 
 Oct. 31, 1870 $18,642,895 
 
 1875 25,599,331 $6,956,436 
 
 1880 27,981,567 1,382,236 
 
 1885 34,576,246 6,594,679 
 
 1890 36,480,649 1,904,403 
 
 1S95 34,671 128 $1,809,621 
 
 1900 63,198,777 ls,527,749 
 
 SAVINGS BANK DEPOSITS. 
 
 Let me now give statements showing de- 
 posits In sovernment n"d post ofBce savings 
 banks and banks : 
 
 Statement of Total Balances at Credit of the 
 Depositors In tne Government and Post Office 
 Savings Banks. 
 
 Increase 
 over 
 Balances, fifth jear 
 previous. 
 
 June 30, 1869-70 $ 3,337,072 
 
 iS74-5 7,171,181 $ 3,S04,iOO 
 
 1879-80 ... 11.052,956 3,881,775 
 
 1884-5 32,979,076 21,926,120 
 
 1889-90 41,012,465 8,033,389 
 
 1894-5 44,450,498 3,438,033 
 
 1889-1900 63,149,722 8,699,224 
 
 DEPOSITS IN THE CHARTERED BANKS. 
 
 Statement of Deposits by the Public in the 
 Chartered Banks at the dates named. 
 
 Increase 
 over 
 Deposits. fifth year 
 f)reviou8. 
 
 June 30, 1870 $ 54,074,760 
 
 1875 61,094,860 $ 7,02!3,iOC 
 
 1880 76,244,065 15,149,205 
 
 1886 95,030,429 18,786,364 
 
 1890 128,631,455 33,601.026 
 
 1896 182,688,227 54,056,772 
 
 1900 277,256,716 94,568,489 
 
 The following figures will show the ex- 
 ports of Canadian produce by five year 
 terms In the same way : 
 
 EXPORTS OF CANADIAN PRODUCE. 
 Statements of Exports of Canadian Produce for 
 
 the years named. 
 
 Exports. 
 
 - '-70 $ 67,045,868 
 
 ■W 70,749,660 
 
 Ic r 74,671,452 
 
 1884-5 81,158,715 
 
 1889-90 87,697,368 
 
 1894-6 103,085,012 
 
 1889-1900 170,642,369 
 
 Increase over 
 previous 
 fifth year. 
 
 $3,713,792 
 
 3,921,792 
 
 6,487,263 
 
 6,538,653 
 16,387,644 
 67.557,357 
 
 IMPORTS FOR HOME CONSUMPTIO.V. 
 
 Statemp! ' of Total Imports for Home Consump- 
 tion for the years named. 
 
 Increase Decrease 
 over under 
 
 Imports. fifth year fifth year 
 
 previous. prevu,us. 
 
 1869-70 $ 71,237,603 
 
 1874-5 119,618,657 $48,381,054 
 
 1879-80 71,782,349 $47,836,308 
 
 1884-5 102,710,019 30,927,670 
 
 1889-90 112,765,584 10,055,565 
 
 1894-5 105,252,511 7,513,073 
 
 1899-1900 .... 180,804,316 75,551,805 
 
 TOTAL TRADE OF CANADA. 
 
 Statement of the Total Trade of Canada for the 
 years named. 
 
 Increase Decrease 
 Total over under 
 
 Trade. fifth year fifth year 
 previous. previous 
 
 1869-70 $148,387,329 
 
 1874-5 200,957,262 $52,569,933 
 
 1879-80 174,401,205 $26,556,057 
 
 1884-6 198,179,847 23,778,642 
 
 1889-90 218,607,390 20,427,543 
 
 1894-5 224,420,485 6,813,095 
 
 18S9-190O ... 881,517,236 157.056,751 
 
 1 thought. Sir, that, in the absence of 
 diagrams, these condensed statements would 
 give us a hurried review of the progress 
 
^fc^-." . 
 
 13 
 
 SoJ^'thfH '° *•'"'" ^"'""^ departments i 
 present ^confederation down to the | 
 
 YUKON TERRITORY. 
 So much has been said about the Yukon, 
 terl/j"? '"'■^ ^^^^ ^^ House will be in. 
 h?'; r -P-'^'t-es Of that district 
 
 1898 . ^"'"'"""'-Takon. 
 1899 
 
 1900 v.'.v. ■;.".■; 
 
 six months to Dec. StWO. . . 
 
 »287,423 55 
 575,812 79 
 730,771 99 
 446,184 28 
 
 J2,040,192 61 
 Showing that in the three and a half 
 years, we have received in tlie wav of 
 
 , , ^ — ' — v..i.uict. oi tiiat district soniniwi t , — •■■"n"ii tut- .sum or 
 
 I have first made a statement of the ' t'T'T' .^ ^^'''' "«'' « ^^^^^' statomeut 
 
 royalties, because that is a .w-alltem, and I rroS/^^^^ which ,s not oonflnod 
 nprha„= .^»„,. . . and. to royalties, but will show brieflv the re- 
 
 perhaps, should be separated from 
 general receipts : 
 
 the 
 
 , ^ o..v^,if uiieiiv IMP rp- 
 
 ceipts and expenditures of all .lasses on 
 account of the Yukon territory : 
 YUKON TERRITORY. 
 Revk.nck. 
 
 •Interior . . 
 Post Office.... 
 Customs . . 
 Public Worl<9.' 
 Fisheries 
 
 Total. 
 
 1896-7. 
 
 ? cts, 
 
 8,593 00 
 
 50 00 
 
 9,873 24 
 
 1897-8. 
 
 9 eta. 
 
 735,485 09 
 
 2,0S3 50 
 
 ft3,185 39 
 
 189&-9. 
 
 1899-1000. 
 
 8 cts. j 
 
 1.2G1,8I« M I 
 
 9,4(il 28 ' 
 
 482,098 55 i 
 
 " cts. 
 
 1,130,965 49 i 
 
 SL.'i.TO 99 I 
 
 tiI3,191 97 I 
 
 33,71(! 88 I 
 
 *,t'x'l 48 I 
 
 18,516 24 I 800,753 98 | l,7.53,37.;irjl:^:^7l 
 
 Totr.l. 
 
 4 ots. 
 
 3,1.3(!,85!l 88 
 
 ;«),14o 77 
 l,l(i8,:U9 15 
 
 A 710 88 
 4,C01 48 
 
 •«,37<i,(>73 16 
 
 xukon. nn.I ir, *i._i _ . ' ^" "^"S 
 
 sum. These figures represeut only the 
 
 actual collections in the Yukon. But we the vm-. , -^- - -.^ uu uuuor, 
 
 an know that a very large proportion of tl eve.^uet , I ,?''^' ^"-^ ''^'^''^ to «„; 
 good.s imported at Vancouver or Victoria Lt.tT ''*^'^'*'*'" *" t"<^ s'ln.s i have 
 
 or. for that matter, in the eastern .Z'To] I ^.n^^^: .^^^l^^- -'^ ^ollow.n: 
 
 ^'^-. and. in th;Vw;;;: i iir „olJ,:r 
 
 1896-7. 
 
 « ots. 
 
 5,998 47 
 40 00 
 
 ExPENr)tTUBE. 
 
 1897-8. 
 
 Interior ... . 
 
 Post Office ....".'...'. 
 
 Customs 1 o noo .;;; 
 
 Public Work;.: .:::: ! 3,93878 
 
 Railways and Canals 
 
 Justice. 
 
 Mounted Poiiee.' 
 
 Militia ■■■;■ 
 
 Manne 
 
 $ 
 
 Its 
 
 Total. 
 
 22,134 76 
 
 47,026 65 
 43 :« 
 
 3,239 09 
 
 14,000 00 
 
 4,996 00 
 
 933 97 
 
 495,770 08 
 
 9J,976 75 
 
 32.112 01 I 665,984 87 
 
 1898-9. 
 
 9 cts, 
 
 223,626 24 
 21,950 39 
 28,931 88 
 08,619 32 
 5.5,952 !t2 
 12,640 98 
 874,852 72 
 387,763 41 
 
 1.674,243 86 
 
 1899-iyoo. 
 
 V cts. 
 
 331,850 21 
 112,,3fti 57 
 30,861 84 
 118,644 05 
 24,457 60 I 
 22,673 56 I 
 492,427 52 
 173,260 21 I 
 800 00 
 
 Total. 
 
 S cts. 
 
 608,401 ,^7 
 
 1.H402 29 
 
 66,671 -.9 
 
 201,163 ,(7 
 
 85,400 4J 
 
 ■36,254 51 
 
 ,885,185 (W 
 
 061,0a-> 37 
 
 800 (iO 
 
 PubUo WoTkJ'ter "'»°*t""' <»> oon«,lidated fund .... 
 
 !,.3nfi,{49 ,i6 ! 3,(ira,29olor 
 
 I capital 
 
 Excew of receipti. over all eipenditurs. 
 
 •697,382 
 568,874 
 
*a*!!Si 
 
 J^^Jg^l 
 
 y^WVi 
 
 LiOs 
 
 14 
 
 Thus we liiul, If we take all the expendi- 
 tures charKoable to coiisolidntcd fund and 
 this extra suiu cliar^reMlde to capital, our 
 revenues from the Yulcon. witliont eountin.Lr 
 the Indirect ri'venui's I have referred to. 
 amount to !i!128.5UN.()i; over and above all 
 expenditures in tliat district. 
 
 Now. it w;is the policy of the Kovernment, 
 at the beginning— to use an expression which 
 has hecome current— to nmke the Yukon 
 pay for the Yukon; iind that has been car- 
 ried out. And, now, Sir, in view of this 
 very handsome financial statement to the 
 credit of the Yukon, and in view also of the 
 desire of the sovernment to encourage the 
 development of minin>f in tlie Yukon as a 
 permanent business, now tliat the first rush 
 for rich creeks has passed, my hon. friend 
 the Minister of the Interior has been able 
 to announce a very important step— that is, 
 that the royalty In the Yukon district in- 
 stead of being 10 per cent, shall hereafter 
 be 5 per cent. That, I have no doubt, will 
 be a very Important concession for the de- 
 velopment of the country. We do not think 
 that a reduction was needed earlier. So 
 long as the first flush of the Yukon excite- 
 ment was on, the people were ready to go 
 In and pick up their nuggets and pay the 
 royalty cheerfully. Bu*^ that is over, and, 
 If that i.^ to be a permanent mining dis- 
 trict, mining must be carried on under bet- 
 ter conditions than heretofore. Everything 
 that Increases the cost of mining is a dis- 
 advantage to the miner and to the develop- 
 ment of the district. So, my hon. friend the 
 Minister of the Interior has concluded to 
 advise that this reduction should be made 
 and we have accepted It. This does not 
 necessarily mean that the revenue will be 
 reduced by half. For my part, I am a 
 great believer In the idea tlint you can some- 
 times get as much money out of a low duty 
 as out of a high duty. I nni not prepared to 
 say that it will be so In tiiis case, but, un- 
 doubtedly the tendency of high duties Is to 
 lead to smuggling. Therefore, with a less 
 royalty than we have heretofore had we 
 shall be able the better to collect the revenue, 
 and 1 trust we shall not have so great a 
 
 falling off In the revenue from that source 
 as miglit seem probable from the mere an- 
 nouncement of the reduction of the duty. 
 
 I SOUTH AFRICA CONTINGE.N'TS AND 
 ' HALIFAX GARRISON. 
 
 i Tlie House will be glad to be informed as 
 I to the expenditure on the South Africa 
 { contingents and the garrison at Halifax. 
 i We appropriated two millijns for the war 
 I in South Africa, and the probability is that 
 that will just about cover our expenditure. 
 
 The following figures show the expendi- 
 tures upon tiie contingents : 
 
 Expenditure on South African Contingents. 
 
 1800-1?00— 
 
 First contingent % 305,503 57 
 
 Second " 946,714 48 
 
 General 185,387 77 
 
 Less refunds. 
 
 $1,437,605 82 
 8,247 22 
 
 Total expended 1898-1900 11,429.358 60 
 
 Expended to Feb. 26, 1901, from 
 
 June 30, 1900 839,356 77 
 
 Estimated further expenditure 35,000 00 
 
 Probable total expenditure $2,003,715 37 
 
 Thus It will bo seen that the expenditure 
 will probably very slightly over the 
 
 amount already appropriated. Over and 
 above that, however, wl have made pro- 
 vision for a special Item with respect to the 
 garrison at Halifax. It will be remembered 
 that it was the desire of 1 er Majesty's gov- 
 ernment to withdraw the Imperial regiment 
 from Halifax in order that they might take 
 part in the war, and the suggestion was 
 thrown out that Canada might garrison 
 Halifax. That was very cheerfully done. 
 What may be the future of the arrange- 
 ment we have yet to know and to announce 
 to the House. The following figures will 
 show the expenditure on the Halifax gar- 
 rison : 
 
 Halifax Garrison. 
 
 1899-1900 $116,265 14 
 
 Expended between June 30, 1900, and 
 
 Feb. 26. 1901 184,711 7:! 
 
 Es'imated further experolture, 1900- 
 
 1901 85,000 00 
 
 $387,976 87 
 
,||g-'-|;:ij||i|j||il-' 
 
 l-< 
 
 Recapltulatlon-South Africa Contingents and tion In thi, m . 
 
 Halifax Garrison. , ' /'"^ rospoct. w,> will look at the 
 
 The expenditure on tbo South African ^v■.r '.^ ,Tols n.' h"""''.' "'■'"'*" •''«-'"'t^>-'<- tho 
 
 J^ HaU.. .arrlson .a. . su.nn.ar.:; ^S'L^ '^(^ r 'l^ Ti.^^^:^ 
 
 Expended In 1S99-1900 for South 
 Africa contingents and the Halifax 
 garrison 
 
 ^p"l°'^oc'' J"""^ June'Vo.'igoo, to 
 Feb. 2S. for South Africa contin- 
 Kents and Halifax garrison .. 
 
 Estimated further expenditure 'to 
 June 30, 1900 
 
 loan wa. Is.su.^1 at 01 J an.l a lra;tion more. 
 
 Bnt.sli con.sols were quoted a.s hiirb as 1131 
 
 11,547,62.! 74 ''^o-ilay Canada's Kecurlih-s stan.l a fraction 
 
 better than they did who,, they w ;e pi„vd 
 
 72I.06S 50 "'l .^'"^' '"•"•'^^'t "> '>^'-»T. but l;,vjsl, ,.o„soN 
 
 which were quoted as hiiih in tli.it ve-ir -xi 
 
 i!^i^O IKU. „ave in consequence of the m,-- l^^,;!; 
 
 Total — " r n ' "' ""■ -iiii,;;encv 
 
 $2,391,692 21 ""^ f^f """>«■>• market and the dilticnlties 
 
 So that at the close of the fiscal year the ■■"■'""'^ '''■"'" t'"' "•"•• '"ll-'n as low as 
 account will probably stand. $2.000,Wi. ex-'^'^- ^° "■'""" ■^"" '''>'"^' "^ conip.-.re the 
 pended for the contin.ceut in South Africa ' ^"'""^'o"*^ •'« tbey w,.,e in Is'JT and the 
 and $3Sr.iMH, expended on account of the "'°'""*'°"-' f'"""-^- ^'ou will .liscover that 
 parr,.«on at Halifax. j while In th. acM.al con.lition of the uioney 
 
 T , ., i '■""'^•'' "'■ ■■'" ''■it'-'^l' consols ha.s fallen in i 
 
 sati^t '° '" ■'""" *° "^'^'^^ " very^"'->' "'a'^-l <le.'ree. the securities o Can 
 
 sat,s actor.v shitenient with re.^ard to the ! ■'"'••^ "'^ve held their own an.l stan.i today 
 ce.l.t and standing Of Canada abroad. Ila;,- •■> f"''tion better than when the l„a. was 
 Pily, under all governments Canada's credit f*''""'' '" ^'"^ y^ar 1,S!).: 
 '<><• a lony- time has i,een stron- and w ' 
 
 have reason to congratulate ourselves that bou.nties o.v iro.v a.vd steel 
 
 durin? the past two or three years circum- i i,o , , 
 
 stances have helped us to add to thTt 1 1, ^''^V ^f '''■■•'^"- ^''^ Speaker, to the ques- 
 Htren^th. The House will remeirthaU, ' S^"/', *''^ '""""''"^ °" ^'-' ••"'" '-n. 
 the last parliament we pas,sed an S where itl?^ '"?""" '" ^"""'"'^•tion with 
 
 bv. in cotijunction With an imperial Ac T^ti- ' '"'"""'' """• '"-'■ 
 
 ranj^ements were made for pHcn.' r„^' ." ""' '^"' ''"''"' °^ P^'^'"'^' 
 
 rtian securities upon what tl^UoaZuT '" ''""' ''"" '™' "'••'^ •■^""Pf"" a 
 Tru.stee List of Englanr It Is bin ^r""*^ '"''"''' ^''""' ''''"'■ """ "•^- '"'""-^ 8tr..,n..e 
 
 r^-b^i "ne"':ruSb,:f ^r-^ ^^-^ — -^ -.n th;;:as;;; 'a eu ^ 
 
 If we were merely to look at tl e auotat / i °"' r'""" '''" ''""'''"^'' ^'"''•""•^ "'^^^ P»y- 
 for our loans, without refee,,'" to n^ ,'"T ;'''''' *'"'"^"'^ ""^ ^-^^^"""^ ">• J'''>-- 
 ditions surrounding them, w^ m gh te-S y 'r' " """' ''"'"'"'^ Departm.-nt. Now. 
 
 reach the conclusion that Canad / hS ' ' \r7' "''''' "'''''' ''""""■ "" •"''•"r «'"1 
 merely held the credit she ha,Isey;,,Lo' '''"' ' '■'^""''' "'•'« '^ ''''-'"t : the 
 
 a*.'o. I think, however! we can ^Lnf"': t""""" ''°"" ^" ""^"^"•'^^' ^■•°'" the cus- 
 ourselves in the belie Tha we f" """'"'''' '''''''''' '' '''"-'' "'e eus- 
 
 strengthened our position somewhTf i^" r\ ''""""''"' ""' "'" P^-^»'""t of a 
 2n.or..e„t,oan. vhlchlhadt.en, "■ T' "" '''" "''" '"■■"'' "^-'^ ^'^^'•t"i"'v 
 Of placing In London In 1^7 w.* '^T''''' ' •'' '■"""^- "'™"-''*^ '''- '"""".v never 
 littlemorethano J ?)o?f, ?"''"*'' '""" """ ^be treasur.y. and why It 
 
 These .stocks ^e'u' as hlJi^lsos'ariT f^'""" f'"'"^ 7' ,"' ""^ ^^'^•''^"■■•^ '" ^h 
 and they have been as Irfw 1^ if ^' "" ''^ '^ '"'^'""^ °' payn,™t i„ that 
 
 In the latest q,;7C":u-C '"'"-•"'''• tT-'' ' '"^'^ ""' '•""' •''^"^' ^o ascertaS 
 per cents are quoted at 9- wldeh •"" f i "7'^^"^- ^""' ^^"^ ^^'^ niethod established 
 a fraction bettn'r trn Ly were wh tty tim "% "'" '"""""' '' "" '" "^ P-'^-S 
 were placed on the market TnTsoT b. ^^^ I n . r <^"»;«'"«"C" l^as been „,,,, „„, 
 
 we would correctly ".--arour^pLi'! :;:::^;;;r Sa^T-dij-.r;:^;^ 
 
16 
 
 it w.'is rliarnetl with these siinis. Ilitlierto 
 they have not been iumiIi. thi y h;ivo lieen 
 uiiicli In the aKKrefrate, but In any one year 
 up to the present time the anmunt has not 
 been lar^'e cnoii^'h to become a matter of 
 liny considerable consequence. lUit \vith 
 tlie prospect of havinsr to pay very l.irue 
 sums now and for several years tn come 
 for tliat service, I tliinl< the House will 
 ajrree with me that It is lime there was n 
 clian;,'e in the method of book-i<eepinK. I 
 propose, therefore, tliat hereafter, beginning 
 witli the 1st of July next, whenever pay- 
 ments are made in tlie way of bounties on 
 iron and steel, they should be paid directly 
 from the treasury and should be shown in 
 the public accounts in that way, Instead of 
 appeariui; in the Auditor Ceueral's Keport, 
 which is the oidy place you can conveniently 
 find them, as a refund of tluty, wliicli is of 
 course entirely incorrect. Now, I ti)i::lv the 
 House ;,'enerally will auree with me that 
 this is a wise policy. There Is one other 
 point in connection with the matter. If 
 these bounties were to be paid contiuu- 
 o'-'ly from year to year as part of our 
 ordinary expenditure, we should of course, 
 have to charge them ajininst the revenue I 
 of tlie year, they would have to be charses 
 nsainst income. But the House Is aware 
 that we are treating this as a tem- 
 porary subsidy for the establishmeui of { 
 a great industry, and we pro; ose tliat ! 
 tliat sliould cease to exist this-- year in a ' 
 short time -In six years frcm the 1st! 
 of ,Tuly next. We propose, tlierefore. to i 
 treat this precisely as we do a railway sub- 1 
 sidy, and that it sliould appear In a state- j 
 ment of tlio public accounts exactly as a i 
 railway subsidy now appear.'-. That will 
 inal-;e a slight chanse in some comparisons 
 that are occasionally made. If we want to 
 be absolutely exact in our calculation with 
 respect to customs revenue and with respect 
 to surplus and deficit, a careful note must 
 be taken by tliose interested in such dis- ! 
 cussions. and it will be admitted that it is I 
 better that we should makf a change in 
 the way I propose than that .ve sliould go 
 on payir.g large sums of money, one million, ( 
 two millions, some persons say three, four ' 
 or five millions, in the way that It has hith- 
 erto iieeii paid, lhu.s diminishing our appar- 
 ent customs revenue. Instead of p.-iying It 
 as a direct charge upon the country. 
 
 Mr. W.M.L.VfK. Will it be charged to 
 consolidated revenue fund ? 
 
 The MI.MSTKU OF KINANCK, It will 
 not be charged to consolidated revenue 
 fund. 
 
 .Mr. WALLACE. Why V 
 
 The MIMSTKK OK FIXAXCE. It will 
 be treated as a railway sul).<idy. We have 
 treated railway subsidies, not as ch.irgeaiile 
 to the ordinary revenue of the year, but to 
 
 a s,)ecial revenue, and not 
 
 as if it were to 
 
 lie. onie an ordinary and annual cliar^'e. If 
 it were a continual charge it would be per- 
 fectly right to charge it auainst the consul! 
 dated fund, tiiat Is, againsr the ordinary ex- 
 penditure of the country : i)ut as it is to be 
 a special charge, exlstiiir only tor a sliort 
 period and designed as a subsidy for estal,- 
 lisliing a groat industrj-, we propose t;' treat 
 it exactly as the grant of a similar .sum of 
 money for the encouragement of a railway. 
 
 Mr. WALLACE. Then we understand it 
 will be charged to capit.il account ': 
 
 The MIXISTER OF FIXAXCE. Well, tlio 
 book-keepers make a fine distinction, which 
 perhaps neither my hon. friend nor myself 
 clearly see, between capital account ;nid 
 railway subsidies. Perhaps the theory upon 
 which that has been done is this : That il 
 you make a public work, even though, it is 
 only a hole in the ground, it belongs to the 
 Domii.ion. but a subsidized railway does not 
 h ong to the Dominion. That is the theory, 
 at all events. We do not call it, techni- 
 cally, capital account. It Is charged to a 
 special account, but in the sense which the 
 hon. gentleman has in his mind It is capital 
 account, inasmuch as it is not charged in 
 the ordinary expenditure of the year. 
 
 TARIFF— BEET ROOT SUGAR INDUSTRY. 
 
 I do not propose. Mr. Speaker, to make 
 any changes in the tariff. In saying that I 
 do not f('r one moment assume that the 
 tariff is perfect, I quite realize that imper- 
 fections may be shown. 1 realize that here 
 and there some special interest would be 
 pleased if we were to make some change. 
 I am not prepared to say that there are 
 not some cases in which there are inequali- 
 ties which might better be remedied. But 
 there are not many items in the tariff which 
 can stand absolutely alone. Occasionally, a 
 
i: 
 
 revisfon of the aS I !5^" '."" '" "^ "'"^ 
 men Of the coun rv h ^""^ '^* ^"«'"««'» 
 valup nf ™"°try hav-« appreciated the 
 
 t-S 1 :r a""r" r ^'^^""^ '" '^' 
 
 tbe opinioathat i " k"''"'° "-"P^^^^^^d 
 ties thnn ' ,P^"«''"'"i «n(l some iao,,unll. 
 
 p-r;r',;rs «-«■'» ■'. 
 
 tariff tinkering. "^'"^^'^^^"y described as 
 
 <..?oTr;en"r?:;cT''*'^^'''^« ^"^^ '"''' 
 
 we think it", , " ,n, ■ '""'■ ''''''• "'^' 
 
 tli^ dav ;« nl ^, ^'^ P'-'t'^f'y waiting for 
 '^ uaj to come when there sh'iM h» .. ^. , 
 
 Of people, or?on.ep"ticr;in't""'"'^^ ''' 
 P-rer that we woulS^aSXTe ^heZ '^ 
 
 ™ent Of the country win be tS^S ;^t 
 have .some stability about the tariff and 
 not make any changes at the present tLe 
 
 r have stated that we ..hmi „ V 
 obanges. but that Is not It^e ly corSln^d 
 
 n^um'":.;:;^, ''■■'' -^^—^ "^ rZi;t 
 
 a ch^nTo" K / " '"'•"■"•''y '" ti-^ nature of 
 Inrn'' T '■"'''"' '" ^'^'^ "••'tu'-e Of an ex- 
 
 Sy :r "U ;r ? ^^ *'° ^^^'^ ^^^^p^"' 
 
 M,« 1, ^^^'^ '^''^" •iske.l to consider 
 
 ^"e question of establishing the bee roo 
 ;^u^ar industry in this counfry. We ha.o 
 
 ■,7e nn."^''!"'^"' ^"' °°* successful. aVdwe 
 
 Justifl!!^ f '""''^ ''' "">* we wouTd 
 ' -lusttfled in granting bounties to revive 
 
 ' that business, in saylnir that if i„ . 
 wish to discredit. If /iSSld "n V o'd n"' 
 because my .nowJedge would not peml 
 
 form of free maehinen- rt ' "*"^ '" t^"" 
 to us th-ir tiu.v ^' " was represented 
 
 n«X;::"°,',,,'":r«7"'""»'^- 
 
 tlie words th?r.H "" 1"'i"fi<'d with 
 
 a cla.s not ' , ! "'•''''Wnory should be of 
 
 emnH ^ ^''*' "'"•"" '■""dition Of any ex- 
 emption of tliat character ft hn. >. 
 
 ada, prevent, the concoss-on hecom^n-? of" 
 any substantial value ta ti, '^'""'■"- of 
 tbislndust^. iJs eL e :,^:;ntT "' 
 to me to be r-^nsonable t S . hi T"" 
 sugar nlHiu ic , " beet-root 
 
 >t Should alf be nLd^ocinX^T''' 
 manufacturer or cont;acto o t fh/ """ 
 be held responsible for thl , ^ '""^ 
 
 Whole factor, nnd '^^"//"V''""'"'^-"^ "^ "'« 
 
 one plec^^mSn^ ";, V:Sr.:r/"^ 
 other in the Unit.^ sLt there V a' ^h" 
 
 consideration, we hr:-conS/'f..-l"r 
 
 ^m-di:^tis^;--rE 
 
18 
 
 continuing It, we will permit the free ad- 
 mission, under any regulations that may be 
 made by the Customs Department, of ma- 
 chinery of every kind Imported for the pur- 
 pose of eoulpplng a beet-root sugar factory 
 Into the Dominion. We thin", If the In- 
 dustry Is to be put on a basis of business. 
 If the Industry la as promising a one for 
 the Dominion as It Is said to be, with thu 
 bounty which Is allowed by the legislature 
 of Ontario, and with this valuable conces- 
 sion, for it is a valuable concession. In re- 
 spect to the luachlnery, an opportunity will 
 be allowed for giving that business a fair 
 trial in the province of Ontario. Such, how- 
 ever, is our hope, iind I have no doubt my 
 hon. friend the Mlnisiter of Agriculture (Mr. 
 Fisher) will be able to lend the assistance 
 of his department. I am told that one of 
 the greatest dittlcultlcs that they have to 
 contend with In thi.s business. Is. in the 
 cultivation of a beet of the proper strength 
 and of the proper iinallty. That is a ni.-iit-er 
 coming particularly within the authority of 
 the hon. Minister of Agriculture, and I have 
 no doubt that he will be glad to lend the 
 assistance of his department In the way of 
 Instruction. Information, lectures, circulars 
 and literature, or In any direction that tends 
 to Improve the cultivation of the beet. 
 
 Now. a markcu cliaracterlstic of the pres- 
 ent session has been short speeches and I 
 desire to have the budget speech respond 
 to the general feeling In that respect. 
 After all, the only (piestfon of real 
 Importance In the budget speech, out- 
 side of the general Information It con- 
 tains and which may be Interesting, the 
 thing that always Interests people in the 
 budget si)eech Is the question of tariff 
 changes, and as we have no tariff changes 
 to announce, there Is no reason why I 
 should occupy the time of the House with 
 an extended speech. The tariff policy we 
 have to offer to-day Is the tariff policy which 
 we adopted In 1S97 and which we have con- 
 tinued up to the present time. It Is a tariff 
 policy based upon the necessities of our rev- 
 enue, a revenue tariff, which Incidentally 
 affords a very considerable degree of encour- 
 agement to those engaged In Canadian in- 
 di'>itries. and havlug as its leadinir principle 
 (he principle of the British preferential 
 til riff. 
 
 PREFERENTIAL TARIFF. 
 
 I am afraid that on that question we are 
 as wide as ever from our hon. friends oppo- 
 site. Perhaps it is not easy for me to de- 
 termine how wide the difference Is between 
 us. In view of some of the conflicting state- 
 ments hon. gentlemen have made from time 
 to time, but I suppose I shall not be wrong 
 if I say that the ground taken by hon. gen- 
 tlemen opposite Is. that while they are In 
 favour of the principle of a British prefer- 
 ential tariff, they are opposed to what they 
 call a one-sided •preference. 
 
 Some hon. MEMBERS. Hear, hear. 
 
 The MINISTER OF FINANCE. Hear, 
 hear ; I am glad to rec-clve these hear, hears, 
 because they show that I have correctly de- 
 scribed, as I desire to do, the attitude of 
 hon. gentlemen opposite. They s;iy that 
 they are opposed to a one-sided preference 
 and they say our preference is a one-sided 
 one. 
 
 Some hon. MEMBERS. Hear, hear. 
 
 The MINISTER OF FINANCE. Hear, 
 hear ; and again I am glad to have It. 
 Surely If a one-sided preference Is bad, anil 
 if our prffirence Is a one-sided one, there 
 is only one thing for hon. gentlemen to do, 
 and that is to bring down a resolution to 
 repeal the British preferential tariff. 
 
 Some hon. MEMBERS. Hear, hear. 
 
 The MINISTER OF FINANCE. I an; 
 bound to believe that they will do so, ami i: 
 so. of* course we will have at once the issii' 
 joined lietween us. We can respect the;; 
 view altliough we differ from it. But, w- 
 will know exactly where we stand and ui 
 will know whore they stand. They hav 
 held that we did wrong in granting a prefer 
 ence to the goods of (U-cat Britain without 
 demanding a preference for Canada in ti; 
 markets of Great Britain. 
 
 Some hon. MEMBERS. Hear, hear. 
 
 The MINISTER OF FINANCE. Agu.: 
 those comforting hear, hears, which sho- 
 that I am correctly irivlu" the views of ui' 
 hon. friends. They have been pleased r 
 try to persuade themselves and try to per 
 suade the public that the preference lu t: • 
 
M^.M^^^t 
 
 VJ 
 
 Eugllsh market, which they detlre. can be 
 hn.l for the asklnjr. Year after year they 
 have endeavourpd to persuade themselves of 
 that. I suppose, that, like a man who tells 
 the same story again and again until he 
 persuades himself that It Is true, many hon 
 gentlemen opposite have persuaded them- 
 selves they can easily obtain that preference 
 In the English market. We thought that the 
 utterances of the English press, the articles 
 publlshe.1 In the great British Journals, the 
 s^atmnents of the leading public men 'u 
 both political parties, and mo.st of all the 
 statements of such men as Mr. .losepi. 
 Chamberlain, Sir Michael Hicks-Beach and 
 nio Duke of Devonshire, niiide It perfectly 
 clear that that preference, which hon. genUe- 
 men opposite believed ft was so easy to get 
 could not ho obtained In the English mar- 
 ket, and that view we still hold. The onlv 
 new incident that has occurred that I can 
 recall since I la.st discussed this subject 
 here, was that whicli occurred in con- 
 nec'tion with the meetiUK of the A.sso- 
 elated Chaiiibera of Commerce in Lon- 
 don last summer. There the question was 
 '•used in a very gentle and modest form : 
 in the form of a resolution asliin- Her Ma- 
 J.-s^tys government to api-oint a roval com- 
 mission to Inquire Into the quostlon of Im- 
 perial trade. But even in that innocent 
 torni. so Innocent and harmless t!)at it is 
 'lifflcnlt to see how any one would oppose it 
 «-e Und that when they asked a hearing be-' 
 ore the British Prime Minister to present 
 their resolution, he stated that the time was 
 Mot opportune to consider it and he decline<l 
 to receive the deputation. And then dls- 
 couraKed and discomforted by the illustrious 
 I rime Minister of (Jreat Britain, they went 
 t'' the Colonial .Secretary. They made a visit 
 t'> >fr. Chamberlain, who. I have no doubt 
 r-'-eived them with that great courtesy and 
 '■•nsideration which he always extends to 
 ' ;n.adians. They tried to persuade Mr 
 I'.-nnherlain that this preference sliould be 
 -'•anted, an.l thoir own records and reports 
 ','""' '"^-•'"'' can be quoted If necessary- 
 "at Mr. Cl:amberlaln told them courteously 
 I'Ut hrmly and emphatically that tlie thluir 
 could not be e">"-»"'-o.-i f-v « . , 
 
 - ^^ ^ .—..e-j Tvv a tuument unless 
 
 t i-y were prepared to give up their tariff 
 I'lotcction .against Great Britain. That was 
 t- ■• basic principle of Mr. Chamberlain's 
 statement, and these gentlemen were not pre- 
 
 pared to give that up. nor would I have been 
 IZce'^'^ *° ^"'^ " "P '' ^ ^"'1 ''^en In their 
 
 Mr. MACLEAN. Mr. Chamberlain may 
 have to change his mind like others. 
 
 The MINLSTER OK FINANCE. Poa- 
 slbly. .My hon. friend (.Mr. Maclean) will 
 do me the Justice to say that I am dealing 
 with things of the past and present, and we 
 Will not say too much of the future but I 
 sny that as respects the past, in the year 
 18.>7. when we adopted our tariff, that 
 policy of a preference In the English market 
 was not possible. It was not possible In 
 1S.)S : It was not possible In ISW ; it was 
 not possible In 1000. when the Prime .Mln- 
 Ister of Oreat Britain refuse,' o even re- 
 celve a deputation to talk al, .t it • it wis 
 not possible when the dist'n .,siied Colonial 
 Secretary told the deputat.^n tuat he could 
 not entertain the matter unless they were 
 prepared to abandon the tariff against 
 <Jreat Britain. 
 
 Mr. KEMP. .Aray I ask the hon. ;;entle. 
 man fHon. Air. Fielding) where he got his 
 Information In reference to 1,1s observation 
 that Mr. Chamberlain refused to receive the 
 deputation ? 
 
 The MINISTER OF FINANCE. Mv hon 
 friend (Mr. Kemp) has misunderstood me 
 I did not say that .Mr. Chamberlain 
 • efused to see the deputation. I am 
 aware that the deputation of which 
 my hon. friend (Mr. Kemp) was .a member. 
 called on Mr. Chamberlain. What I did say 
 WIS th;it the Primo Minister. Lord Salia- 
 b'lr.v, refused to see the deputation which 
 only asked the privilege of presontin- this 
 bald and not very strong resolution. 
 
 Mr KEMP. There was no deputation to 
 Mr. Chamberlain. 
 
 The MINLSTER OF FINANCE. Does the 
 bon. gentleman say there was no deputa- 
 tion to Mr. ('haiul)erlaln ? 
 
 Mr. KEMP. Not this last summer. 
 
 The MINISTER OF FINANCE. I hold 
 In my hand the report of the delegate of 
 the Ottawa Board of Trade, who was one 
 of the deputation which called upon Mr 
 Chamberlain, and who describes Mr Cham- 
 
Jf 
 
 
 borlaln's reception precisely In line with 
 the statement I have Just made. 
 
 Mr. KEMP. A deputation from the 
 Chamber of Commerce did not call on Mr. 
 Chamberlain. 
 
 The MINISTER OF FINANCE. Well, 
 now. my hon. friend (.Mr. Kemp) Ih a new 
 member, and he surely does not mean to 
 distinguish between a committee formally 
 appointed by the Chamber of Commerce 
 .111(1 a iiunil*or of gentlemen who were mem- 
 bers of that body. But If It was not a depu- 
 tation of the Chamber of Commerce, what 
 have we to think of the Ottaw.a delesate 
 who Rives a full report of the whole pro 
 ceedlng, as u part of the proceodlngs of 
 the Congress of Chambers of Commerce In 
 I-ondon ? 
 
 Mr. KEMP. Do I understand the Minis- 
 ter of FInanco tn say that tho deputation 
 which called upon Lord Salisbury also call- 
 ed upon Hon. Jos. Chamberlain ? 
 
 The MINISTEn OF FINANCE. My hon. 
 friend (Mr. Kempi Is mistaken again. I did 
 not say that. My hon. friend (Mr. Kempt 
 trios to draw a distinction botwoen a depu- 
 tation formally authorized by the mngress. 
 anil a number of gentlemen who were mem- 
 bers of that congress, and who i suppoise, 
 were not formally appointed the pur- 
 
 pose of waiting on Mr. Chamberla :: I do 
 not thin': the hon. gentUnian (Mr. Kemp) 
 will ask us to treat that distinction as seri- 
 ous. I have here the report addressed to the 
 president and members of the Board of 
 Tr.qde of Ottawa. It Is of very great length, 
 and the House would not justify lue for 
 delaying them by reading very much of It, 
 but I think I will have to give a passage. 
 This Is the report of Mr. Thomas Maefar- 
 lane. the delegate from the Ottawa Board 
 of Trade. 
 
 Mr. WALLACE, 
 analyst ? 
 
 Is that the Dominion 
 
 The MINISTER OF FINANCE. I think 
 likely. He seems to have analysed this 
 question over there very well. 
 
 Some hon. MEMBERS. Hear, hear. 
 
 Mr. WALLACE. He did not represent the 
 commercial men of Ottawa very much. 
 
 The MINISTER OF FINANCE, He was 
 
 appointed by the Board of Trade of the 
 
 city of Ottawa to represent them, and my 
 
 hon. friend iMr. Wallace) Is not treating 
 
 that body with veiy great courtesy when 
 
 he says Mr. Macfarlane did not represent 
 
 them. I presume If be was delegated by 
 
 them that be fully represented them. This 
 
 report recites the story of the failure of the 
 
 deputation to obtain a bearing from Lord 
 
 Salisbury, and then it goes on to say : 
 
 Chamberlain Interview. 
 
 Quite aa Intereatlng aa the proceedings ot the 
 c .ngreiis Itself were certain events which hap- 
 P'ued after Its close, and In which some of the 
 •'olegates took part. Most ot them received a 
 . opy of a printed circular containing the letters 
 from the Premier and the President of the Board 
 of Trade In which they declared the time to be 
 Inopportune for discussing the subject of In- 
 creasing and strengthening trade relations be- 
 tween the different portions of the Empire. 
 This was a great disappointment, and it was, 
 I believe. In order somewhat to make amends 
 for It, that Lord Stratheona arranged with the 
 Rt. Hon. Mr. Chamberlain that he should In- 
 formally receive some of the Canadian dele- 
 pates. 
 
 My hon. friend (Mr. Kemp) will see that 
 they did not go formally. They were not 
 formally delegated by the Chambers of 
 Comiuereo to go, but a number of the Cana- 
 dian delegates went to Mr, Chamberlain, 
 aud I think rliey did quite right to do so. 
 
 Mr. KEMP. That does not .say what Mr. 
 Chamberlain stated. 
 
 The MINISTER OF FINANCE. My hon. 
 trieMii (.Mr. Kemp) is too hasty. He hud 
 better wait. I trust the House will pardoii 
 me If I have to read a somewhat lengthy 
 extract. The report goes on to say : 
 
 This interview took place on the 10th July 
 when, besides the Colonial Secretary, Lords 
 Selborne, ArapthlU and Stratheona were pr«!scnt 
 Of delegates : Mr. Kemp of Toronto, Mr. Cock- 
 shutt of Brantford. Dr. Parkin, General Twlggp 
 and I attended, who all had an opportunity f 
 pressing upon Mr. Chamberlain our views' rr 
 garding trade relations. Messrs. Kemp an-! 
 Cockshutt spoke generally of the advantages ■ r 
 preferential trade, and Dr. Parkin tried to shiw 
 the necessity of having the subject properlv 
 Investigated by a commission of experts. Mr 
 Chamberlain replied In a quiet conversntlom' 
 way and endeavoured to show that no progrc^- 
 could be made until the colonies abandoned pr; ■ 
 t(iCtion a. \gainst Great Britain. 
 
 Some hon. MEMBERS. Hear. hear. 
 
 Mr. KEMP. Will the hon. minister allow 
 me to say, that I understood the Flnanc" 
 Minister to state that the deputation whleii 
 desired to wait on Lord Salisbury, aNo 
 
91 
 
 wlthed to wait on Mr. Chamberlain. That 
 l« what I meant, but perhaps I did not 
 make my iwtat rery clear. 
 
 The MINISTER OF FINANCE. I quite 
 agree with my hon. friend (Mr. Kemp) that 
 the deputations were not necessarily the 
 •ame. but the only point of my remarks 
 was. not exactly what the board of trade 
 did ; not what any particular delegate did 
 but what Mr. Chamberlain said and did i 
 cannot understand how the force and effect 
 of what Mr. Chamberlain said and did la 
 In the smallest degree touched by the cir- 
 cumstance as to whether the delegation 
 went by one street or by another. I thank 
 my hon. friend (Mr. Kemp) who Interrupted 
 n.o. because I know he was present, and I 
 think he did quite right In going to Mr 
 Chamberlain. The point 1 desire to make 
 In all sincerity Is this : that these hon. gen- 
 tlemen who have persuaded themselves that 
 this getting of a preference In the English 
 market was an easy and simple thing, have 
 beeu mistaken, and they must know It now 
 from the highest possible testimony. Again 
 and again It was suggested that Mr. Cham- 
 berlain In some mysterious way had given 
 them some encouragement, but here Is the 
 latest utterance of Mr. Chamberlain quoted 
 by a gentleman who la known to be an en- 
 thusiastic advocate of that kind of prefer- 
 ential trade, and Mr. Chamberlain says dls- 
 tlncOy that you cannot get that kind of 
 preferential trade unless yon will take down 
 your tariff altogether against England. My 
 hon. friend from Toronto would not be will- 
 ing to do that, and I am frank enough to i 
 cay that I would not b* willing to do It ^ 
 either. 
 
 Now. 1 have said all this concerning the j 
 past. We do not deny that If we did get ' 
 that preference In the English market. It i 
 would probably be of some advantage to j 
 the Dominion of Canada; but we say that 
 is a question for the Imperial authorities 
 rather than for us. If we could get that 
 preference, we are as willing to assist In 
 availing ourselves of any advantage which 
 might come to Canada through It as any 
 
 of the hou. gentlemen opposlf. The only 
 difference between us Ih as to the po8:;:i.ll- 
 Ity of getting It and as to the mean« of 
 getting It. I do not believe. Sir thiit It 
 can be obtained today. I do not bellt-ve 
 notvitbstundlng all that one reads In t)ie 
 telegram.s from the other side, that we .ire 
 Hkoly to have a change of front Immeulntfly 
 on the part of the Imperial government ..n 
 tiie trade question. Yet I would not sp.-nk 
 of the future. We live in times of grt-.-.t 
 movements and great changes, i will not 
 say that at no future time In the history 
 of the empire, and the early future posslMv, 
 shall this preference be i'lven. Again and 
 awiin I have stated in this House that that 
 Is a question which we must be content to 
 leave to the future. We have believed thPt 
 the true policy of preferential trade was. 
 not to make demands on the Imp.>rlal gov- 
 ernment which we well snew tliey could 
 not afford to yield to us. The true policy 
 was to give to Great Britain this preference 
 freely and openly, leaving the Imperial gov- 
 ernment and parliament to adopt that trade 
 policy which In their Judgment was best 
 adapted to the Interests of the English peo- 
 ple. But. If this preference, which my hon 
 friends opposite desire to obtain, is ever to 
 come. I beg them to accept my opinion, my 
 assurance, which I give them In all sincer- 
 ity, that they will never obtain It by the 
 methods they have employed-that they 
 : will never obtain It by demands on the 
 i home government which are obnoxious to 
 the great mass of the English people. We 
 have much to hope from cultivating the 
 I gooa-wUl of the English people. I venture 
 to say, as I nave said before, that If the 
 time ever comes when we are to receive 
 that preference, we shall not receive it as 
 the result of any huckstering or bargaining 
 between England and the colonies, but as 
 a result of the development of that Imperial 
 sentiment which may override questions of 
 political economy, and In the creation and 
 development of that Imperial sentiment a 
 large and important factor has been the 
 British preferential tariff of the Canadian 
 government. 
 
MM 
 
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