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T 
 
 
BUREAU OF PROVINCIAL INKORMATION, 
 
 THE FINANCES OF BRITISH COLUMBIA, 
 
 HV TIIK 
 
 HON. J. U. PRENTICE, MINISTER OF FINANCE. 
 
 BULLETIN No. 6. 
 
 TNCGOVCRNNCDTOr 
 Va. PKOVJIICC OF BXTISH COLUMBIA 
 
 Vl( TOKIA, |{. I'. : 
 I'rinted li> Kuiiakp WdLiKMiK.N, I'liiitc-r to Hit- Kiiii:'> Most Km .■lUiit M;ijr»t.\. 
 
 I'.HCJ. 
 
THE BUDGET SPEECH. 
 
 -.o; 
 
 Delivered in ll.e Legislative Assembly of British 
 Columbia on Monday, April 28th, 10O^. 
 
 :6:- 
 
 Hon. Mr. Prentice. Minister of Finance, on moving the House into 
 Committee of Supply, said :- . , 
 
 Mr Hpeakkr: The moticm which I am about to propose is the usual 
 one at this suge that the House resolve itself into Comnnttee of Supply 
 Zt Lf. re tokrnK up the main question, viz., the Estimates, which hav« l>een 
 submUted and the financial affairs of the Province generally should hke 
 
 sTat that I do so with a full realisation of the resp.msjbd,t.es of the 
 nn«ition which I now occupy in rising in my place to deliver my hrst budget 
 Kch I ^1 hTt I am Smewhat Imndicapped in following the foofteps o 
 mT Turner, who wa« Finance Minister of the Province for a penod o 13 or 
 14 vcar^ it is perfectly true that I was for some time m oppositmn to that 
 LnUeman but faVn now free to admit that I never knew Mr. Turner until 
 
 1 sat in Ouncl w?Ih him, and I realise this, that in his Department and 
 JhrouLhoutTe Jhole Province he will long be missed. I feel that it was not 
 unt°rhtdeparture that we fully appreciated his splendid personality and his 
 T worth I am sure we all hope that he will W. spared for many years 
 Z rirentBriUsh Columbia in Lomlon. His duties in his present capacity 
 Tre no o-^Unary ones, for upon him devolves the task of not only ^-anng /o a 
 ?arae exte. t fo^r the credit of the Province in the largest u.oney centre of the 
 S bu so far as lies in his power, of inducing emigration to and invest- 
 ments in this Province. On account of his great knowledge .nd experience. 
 Td the fresh rnfornation with which we propore to keep him supplied he 
 wm be abTem St successfully to place before int nding settlers and investors 
 Ue great opportunities to b^th which are aflbrded in this Province. He is 
 pecuHariy qualified for this work and I venture to say his labours will bear 
 
 ^"^I'plop e, first of all, Mr. Speaker, to briefly deal with the Public 
 Account the 30th June, 1901, then with the accounts «- th« year enduig 
 the 30th June next and the Estimates for the year en.ting 30th June, U03, 
 
 "°^ ?aSg\';rh°eP:blic Accounts for the year -^li"« ^hf ^^ Ju^ „^^^^^^^ 
 it will be seen that the actual revenue for that ye.r Z^JX^^lf^^^ ^'^ 
 total expenditure $2,407,492; so that the gross deficit for the year was 
 aSoi 'i72 There was however, put aside for sinking fund mvestment and 
 Ktn S^rb^ures «nder\L I.an Act of^ 1^^^^^^^^^^^ 
 which sum if deducted, leaves a net deficit of $681,9^ Jl. T^ow, sir, ine 
 rxplanarn for this apparently large deficit can bejound to ^me extent in 
 the failure of the actual revenue to come up to the Estimates by !5lf>I....H. 
 
much. ThUdHicituaceuuldr .1 5' ^7 "/ •"^T""" «-^"'^»« '^ 
 the fact that the np^ou a! v^ Hi.ro tlr^'''*^ •^V'^''^" ♦'XFH"<te<J. anrf^m 
 
 "•ak.nK of thi« (;..v«rn,uent, m tT™ia^JT T *^'"--' '^"'^ '"'t fhe 
 when the government „f the .Ihv ound ulli* t" •'"'"•""' ''"P^^-i"". 
 without .m,H..sin« what aprK-aml h" thlt "^ "'"''•* "'"--tion^ 
 
 U.o«e e„KaKed in the variouH i^du.tieH ,. Jhe C *" *^ .* '""^'"^''P "" 
 Since times have iniprov..d it waHlnnli^^ '""''• *"'' "P"' ^fitih-rH 
 
 Iection.«farre«r«hy^de«reL/ Ur«s how' ," ''T P*'''*'^ »'' "-ke c^: 
 and the (Jovernment h,« clecided t Tlkrr •'■- *"' '""" ' * ^'»«^"'t "'"tter, 
 »".|>o«Hible. t.. wipe off worth ess al"^' wrT *"'*?' *'"'' ^'''*"* '-"nd 
 percentage of thene arrears w II Trre»S"T''''w '"*"♦*''• *'''»^ » ''"«• 
 expenditures are concerned Mr S ':«'»""«' «P«>». So f,ir «« laMt y^J'u 
 Bition must ».ar their f^.,!:^^^':^:::^^:"'''':^ '' *''' P-ent^. L" 
 
 his followers were.upp;>rM:« fr(t;V:rnt"7';!r'''?' '»'« ^^-ernaiellt aL 
 
 passed, and we have not .Ko'ldlTZ^^^^^^^^ 
 
 passing them. "'"' **"* authority granted by thi>* H..use in 
 
 The item of .''^7'iO 000 f i r 
 
 was certainly a k'rge ^ne. butTs die Tthe f" A^' ^^'*''""**^''^ '^^ '"00-1 901 
 'I>tures were not carried on d^ .1 th" nr!.? '*""; "?'*!'^ "♦"^^'^-••^ -P«» 
 were numerous persistent and >*e - ounde<rder^^^^^ "••'' 'here 
 
 Province for roads, bridges and ,.^^1 i. '^^ ^'■""' ^^nous parts of tbe 
 
 rapid development parSaHyX T'""' — lue'nee of t t 
 
 has exercised all pos.s'ible care i^ c r yinnut tu"""''''^- J^' <'-*^rnment 
 as possiole has minimised them for Z wi M ^''P^nditures, a.,d so far 
 
 emJ of the Publu Accounts, ^he gen "al "r^'nd.'ir ^' ^»^« «^«»«'-nt at tl.; 
 the appropriafons. ft is all very we'' .oTa kof L " •^■''" ' '•'•^'^*'^ ^^'' »'"«» 
 or near to revenue, but in new rlis u ^ ?I ^*'T''^ expenditure within 
 
 fact we cannot stop short of the u-in .l" "''^ ""* ^"^ " ^'^^ P^'i^v ; and n 
 
 and f..r some time'to eom^ tts'd InT'S t V ^^ f'^ ?--' tin" 
 tainly |,K,k to u time when theincrea!e 1 ri ^""t'-'ue, but we must cer^ 
 
 d.ture will CO.. .pensate for ti.e "uTltv n :» consequent upon such e.vpen. 
 
 tlnough experiences similar to t,? In I'T """'^ '"'f^^^^' ^Ve are pas.i^^ng 
 - ded difficulty that on account f the pi ui^^nr" T'^'T' ''"' ^'^l' ^l- 
 d'ture IS much greater proportionat elv Tn ^^•''"•'^' ^«'"^'tions theeypen- 
 mnted, there is a great clfsp uT j^'weJn "Te '*"'',' ^'^"'^ P^P"'"'*'" '^ 
 population increases and industries a rretablsh J T^ ^f'P^'nditure, but a.s 
 and less ; in fac t, the reverse sh..uld be t).e resu V K '^'''^P'*"'^ ^'^"*« '''- 
 of this, „ such districts as Ro.ssland and th" R ^/ ^^^^^ striking instances 
 •nany of the other mining districswbiol **'^'^"""dary, and we hope that 
 prove to be sin.ilarly -scl^susta n't 'fl! tf ''' ^-"'"P'"^"^ ^'^^^ -'' 
 
 "n- Jn fact, the results in KiK)tenay prove 
 
tie wiMlom of nurturing cmp which Te likely t., h- lur^o '^ i;;-;'^";^ 
 Therefore, I Buy. Hitunted M *♦« «r' we cannot -top Mh..rt of the attu.il 
 requirementM without Beriomly hftm^c^Ting the '"t""-;*^ , , 
 
 One of the itenm of increaiM^ of exfM'r.diture n. 1900 19 ) I * i^ < ut t. t hr 
 increaHe in Civil (Jovernment (Walarien.) Thi-s ha.s Uen a.ul prolmhly w llhe 
 c itTdH.d. hut with the n.Muir.men.H of ...w cliKtruts o,K,n.nK "P; *"<^ ^j*" 
 augmentation of work in older onen. it in in.jK^s.hle to carry ;•» - F^^'J^ 
 nervice etftciently without increasing ih.- c.v.l l.-t. < »»• 7"^: '' ^'^ j;,^ 
 parent increuHe in the fact that the -ala- h of the Und »f-«»'^t'-y ^T"' 
 .lurly charged to Achninintration of J c ■-, are now P'-«' P;"!''"- ^ "" "^ ^ 
 he head of Civil (Jovenunent (Salarien). want to p...nt out here tha t he 
 n.ininK reconler an.l the constable are juM as ,mi..rtant in the d." <n.ent 
 of a new district as the rowl superintendent and his men, an.l w. I . »ore 
 cannot fail t.. provide for these as the country opens up. 
 
 In the Ksliine*e« of 1901-1902 the revenue was estunated at *:.'*"j:' "• 
 This so far as cai. » . ascertaine.! at the present tin.e, whs over estimated by 
 al,..u't 8335,000, as it is not anticipated that the revenue will exceed 
 «1 805 750. As I stateil bef..re, it is a difficult matter in many ot the items 
 o f^v^nue to give an exact forecast, and at the time Mr Turner framed his 
 EstTniates last%ear his reasons seeme<l to be well foun.led. ^on'htions at 
 that time pointil to more favourable results in several •"'P''; «nt respe Uh 
 but we cannot overlook the fact that business in s.m,e lines did not turn out 
 so favourably as was anticipate*!. A further reason was the disappoint., ent 
 Tn collecting arrears already referred to. ami these formed a., unportaut 
 element in some of the items. 
 
 TiiK Estimates. 
 
 Taking the current Kstimat. . , which a; ow lH.fo.e you, revenue is 
 
 estimated to be «2,2'J2,r,6H, and the ex-.-mlilu ^-'. ^;'^»-'' '«%'"^,* «X 
 
 deficit of !*2f,3,559. Included in this aiv p^ov.sK.ns for sinking fu. <l to thr 
 
 a.nount of ^l^T.-Wl, and re^le.nptio . .^(0,000, leaving a net deficit .f 
 
 *^^^Afl will proceed to shr v T have i.v.de a very conservative estin.ate of 
 revenue, it being $328,000 less than tie previous yeur. I have however, 
 deemed it wiser to take this course than to accept what ...ay Ije problematital. 
 I fully believe that the actual revenue will exceed the ^-^t^J'^te. revenue 
 The item of Dominion subsidy, which w,i.s increased as the result of the census 
 last year, is of course fixed, and remains the same as last year. I.i the matter 
 of land sales, we expect to collect only §40,000, and in a.idition t<. that, 
 le^a of pairnents ^> the extent of 840,000, n.aking *80,000 niall; ast 
 year !^1 20^800. In timber royaltier; and licences the amount is *80,000, 
 §5,000 less than last year. Rentals, §37,000, the sa.ne as last yea,;. Timber 
 leases, ftl 10,C00, of which §50,000 is for ar.-ears. b ree miners licences are 
 put down at .§100,000, or §30.000 ur ^er last year. This estimate is l)ased 
 on the collections being .na.le at the present time. Mining "-eceipts general 
 §175 000, or iiS25,000 less than last year. Licences, geiieral, at §8(J,000, an 
 incre'ase of §10,000— an estimate based on the collections made this year. 
 Marriage licenc;s are the sa.ne as la.st year §6,000. Real property tax is 
 estimated at §130,000, based on the assessment rolls ; this is a.i increase of 
 .§5,000. In addition to this, we .^timate §80,000 f„rarrea,^. Personal pro- 
 pe ty tax is §80,000, an increase of §5,000-which, plus §60,000 for arrears, 
 
 t.* 
 
(i 
 
 amounts to |!140,000. Wild land tax is put down at «50 000 f h« 
 ast year, with an addition of $75,000 for arreaJ T ni;?2 ' ?V'*"'« *« 
 Government Dronospa f« ,«„t„ V tor arrears. Under this headmc the 
 
 where thistLpS^t^tLVenrr"'"'^"'"' "^ '^°"«^' the arrears? and 
 may be somewZ uipoplr bVt tf s d'"^'!^ P^"'''°" "^ '^' ''»"'^- This 
 the Province. ""'^P"'*'^' ^"^ •'^ «« deemed necessary in the interests of 
 
 Income tax is placed at 840,000, an increase „f «-. onn ti 
 IS estimated at .* 1 no 000 Tj.«t L„ '* u ,!^^^ *" ilo.OOO. The revenue tax 
 the basis of $5 pe head bu^tiifwa ?""f ' "'^^ ^^^O.OOO, which was on 
 only collected therefoTe this sum wHn Tu P"* I"'." ^"'"'"' ^'^ ^^e $3 rate was 
 this estimate of «S 000 MinerTl t '^^'^^^ '. P''"^'*'^'^ «^«"««« ""d«'- 
 
 the estimate waslnOOOO ^SZll^ir T"^ f ^'^^••^^^' '"«^ y^*"* 
 that the collections durin"' the nr^ . « , '^^ ™*'.'"^' ^ ^^ '« anticipated 
 expectations in this "partfcular ar^ bas^'o'i 'Z T'' T'' $95,000. ^My 
 particularly at Rossland and in fl.! p '^,"" *'*'^ ^*''g«ly increased output, 
 expansion of the Sn"r . iustrv n^^"'^'*"'^ «*^""^7' «"d generally on thJ 
 registry fe^s is Wed on" nrP«.nf ^n . ^°'"? ""• ^^« ''«™ «^ -^^O'OOO for 
 reeeipti fr.un he HlnZ'^rthet' '.' l^' ^T '' ""^ *' '^'^^^O. The 
 at .$10,000, and in tht connect 'on I 3. 't 7 y^^^"^'^'- ''' '''"''^'^^ 
 the new management bvwS i '■^^^'' ^ *^« ''««"^t« achieved by 
 
 cent., notwitZrdingth'eincreasrr^^^^^^^^^ '^P^^: !"^" '1^^'^^ «-' P- 
 same as last year i^ln 000 Jn th ^ T \ Printing office receipts the 
 Restriction A^ct, i have Saeed «40 OOo" k"" ?f ;«^^""« ""^er the Chinese 
 8130,000 estim;te<ro:i;r4t000^^^^^^ ^T' '.T' "' *^'^ 
 
 was based on an anticfpated increa e of tt" relndtr fh'^^' •^"'^'' 
 Government, which there wft« Pv»r.. . I v. retund trom the Dominion 
 
 ever, although therP t „ ^ ^ ""'"P *° ^''^^« ^^"•d be made. How- 
 
 .natters in dtput be w^n theTovi'" •"'T\^'^r5 '" '^^ -"'^"^"^ "^ 
 will receive a L-ge s^mTn seUlemenrof its .'^' ^r"'""' '^' P'°^'"- 
 have based my estimate on wUfiKu. '^'f""^ ^*"' •"^''eased refund, T 
 which I may l^T^ 2^^^^;^"^^:;^: :^ ^^^ ™.-ent, 
 
 or 251:/ J:-: r im^rr -^— -: .^^^ ••- - --^ 
 
 Collection by the Dominion Government to 30th June, 
 
 Paid over to British Columbia '.'. '^''?ri'ul'? 
 
 416,8.il 
 
 Actually in treasury of Dominion .... ^T^aTi 
 
 Received by British Columbia (25 per cent ) I l/aJxl 
 
 VVe .should have received th ree-quaLrs . .' \ tl^'tll 
 
 Balance due by Dominion to Province. 790 61.^ 
 
 the cltel^anTi^'re'tlfofTl' " *''' ""'^ "^'''^^ ^^ ^' ^^P^^ -t 
 of revenue ;iir.e"e t :ifyZ^'%Z'T'' ''l 7' ^'''' *'"' — 
 Government is not enough If S nrn/ / ^^^ '^"'- ^'■""' '^^ dominion 
 
 reeve „„ei„.. o". isi^r^ rn\,;rr.„/p?°;-|';iri?,t^t jj 
 
- .L 11 It Mp Hplmc'ken's resolution were acted upon by 
 
 ^veLTartaing out of the operation of ti.e Chinese I"'™;8™"''"/°«;.^^S 
 
 ii:iT^:X*rpr.^cei,:!tt„s. tr:;i^^ 
 
 Treasury practically u propose, and believe t^) be our 
 
 ttt 4ct are met sliould be paid to this Government. The right ol tne 
 
 Provfncl to tte p«>»ent apportionment is, I ""-'«-«»"''• ,'™'^''„ "X"l a» a 
 f„S%«ects o/chine^ i.i;migraUc,n in the Pro«^^^^^^^^^^ 
 
 Tarrl^^rLTi:' r^n TheX c'it.rfT^Province^t.'^^e whole o| 
 at all IS a n^ni aim juou , ^^^^ admit ot 
 
 ZZT ^hTnlCrrShinU'wtt;, '^eir way - Extern Can^a 
 a rr.U:and the effect on the lalxur market, in ~-.der.t.on"f the Urge- 
 
 -r.ir%'nTS:^ii:.t :ssSn >: p-m^^i:^ .^- 
 fisheries between the Hon. the Attorney-General and the H°^- ^^e Muuster 
 
 of Marine and Fisheries, and we have reason o ^'^^V^ « ^JV^'^^ JoO for Jhe 
 
 ■11 o;.,^«l^nnn for its share of licences for 1901, and ?>^u,uuu lortue 
 
 Tuln ; L in a'ddUio^t: t^^^ is the matter of foreshore rentals and an 
 
 Impost on the salmon pack, both of which are now having the consideration 
 
 of the (lovernment. . >i!innnnO nf which 
 
 Last year the estimate for succession duties wa ^100,000, ot win 
 
 .%U,U00 may be realised. This year it is put down f^^^f 'J.^^; J'^,^^^' ^"^ 
 cou;se, a very problematical ^.urce of income, and no exact estimate can 
 
 ^'"^OnToi the most important items of revenue on the list is royalty ami 
 tax on coa which, as you will see, is down at SLW 000. Last year it was 
 nkced atto'oOO which will be just about equalled by actual receip s. The 
 Fnc eased ou put of Crow's Nesl collieries and the present output of the 
 Vancouver TsLd coal mines Justify me in the estimate 1 have ma<le. 
 
 EXPENDITUKK. 
 
 We now come to expenditure. Under .he head of Public Debt tliere i« 
 a ch^:; 'o? *mi.O. L, year H -^JJl'iilt : et^-Cirhrp^S 
 
 session. Should the loan be floated before the end ot June, there will 
 interest on overdraft to V>e provided for. ^.u\,-\i \< 
 
 In Civil Government (Salaries) there is an mcrease ot f '^OO wjnch is 
 mainly caused by new positions created, which are shown in the Estimates. 
 
 This is not a large increase. 
 
8 
 th.«Udi.Z'„'r'a^vi'ul'„™^StTs.T •"'!"?« • ^"■P'ri^n between 
 
 The expenditure for 1900-1901 was ^.„o ^n ^q 
 
 The expenditure for 1899-1900 was. . . . '^r-r,'? f^ 
 
 ^"' tZonTTp'^i^'^'^^^^^-'^d^heexpendi- ^ ''''"' '' 
 ture on Land Registry offices, viz.: ^ . . $ 06,399 66 
 
 ture on SX'JyXTa^te^rl^^^ '", ''VT '^^^-^'o^trex'pendi- 
 Justice (Salaries)^ In the folSfnTv/^v ' '^^}^^'^ °^ Administration of 
 fer the vote for these oSs to the nr^n ^-^ '''"™"^ *^^'«*b>« *« trans- 
 
 (Salaries). ^' ^ ^^^ P'^^P^'" ^^^-^'^^e. namely, Civil Government 
 
 veryl'r^lrJ:f/;S"o?ret^^^^^^^^ ^^^•-es) by a 
 
 308, will be found a total §26 399 ^6 ^'""""'^ 1900-1901, plge 
 
 year l^l^f j'l^^^riS^t^^^^^ ^^^'-^-> ^ ^^^0,932; this 
 different rp^LTpa^^^^^^^^^ this year $44,195. The 
 
 tion of voter^undi; Ih'e^rRelSS" tT' '^ "^ '"^'^ ^^^ -"-^^ 
 
 Ihere is an increase of about .S4 Oon f^^\\ \r ■ 
 Institutions, and this is necessar? on ac'connt oJ,-' ^^'^•"^"^"^^ of Public 
 
 There is an increase of Sl,d00 for tr?? ?n"Tffi'" population, 
 the Bureau of Mines, to be applied to hpw r.l„ ^ ^^^ *"^ '^2,500 for 
 
 An increase of ^400 is made f orT ^p .material, etc. 
 while expenditure on\cco "nt o?the Hos^LT^^^^^^ "'""^ '^^ ^*™'-P^ 
 
 before. I have already referred o the exctfl.!?. ^' ^'''''"" ^^ *^« «^'«« ^« 
 >-Utution under the alle supelTeiul^c^S^:. 7::ZZV. ^' ^'^ ^'^"^^ 
 
 Public Works. 
 
 down^at'l65loo'";i:t't"" \l '^' '•'"" "' ^^^'^ ^^^^s, which is put 
 exceptional ou;iay%ndnlS^^^^ ZZT T ^'''''''' ''^'^ -« - 
 demands. This ^'ear, howTe^ ft j^fe?' Jtl^r'T'"'^'' ^"' ".""'^''^"-^ 
 expenditure should be reduced «nrJ f L ■ • *^'^*' Present at least the 
 
 appropriations for 1900 1 9oT ^PProp nations arc $19,633 less than 
 
 increL'eTtd^^ct'^^ ^'••"" ^^19,000 to S137.570. This 
 
 of Health. ()w ngTthe pretieL^ T^'T' "^ '"^^'^^^ ^^'^ ^^e Board 
 this year, which to^stLpoSre'red exp^vr '" ,^ ^^"^'^^^" ^"'«"- 
 It was deemed advisable to place^a sum in Thl?' f' ''^" *' P''^'"?*^' measures, 
 the health authorities to Ce tith s mi ^'''""*^«« ^^^^ient to enable 
 special warrants. ^ ^^ ''"''''*'" emergencies without passing 
 
9 
 
 Education. 
 I now come to the consideration of the expenditure in connection with 
 
 obTecThtriuon o expenditure by throwing the onus of cost to some 
 
 increased from §369,000 to $412,140. 
 
 .$369,037 
 
 Estimates, 1901-1902 
 Buildings 
 
 70,750 
 
 $439,787 
 Less six n.onths' collection revenue tax, four coast cities. 20,000 
 
 S419,787 
 
 Estimates, 1902-1903 
 Buildings 
 
 .!?412,140 
 . 62,750 
 
 8474,890 
 
 Less twelve months' revenue tax, coast cities ^^'^^^ 
 
 $434,890 
 An increase of $15,353 or 3.55 per cent. 
 
 The expenses for education had l>een increasing at the rate of 10 per 
 cent. Thes^e estimates provide for an increa e of 3.55 per cent., wh>ch ,s 
 largely due to the measure passed at last Session. 
 
 If the Government had been compelled to bear the -hole cast of edu^ 
 cation in the 14 towns that have been placed on a similar footing to the tour 
 c ast cLs of Vict<.ria, Vancouver, New Westminster and Nanaimo, the 
 ^ttate would have la;gely exceeded the 8412,140 set ^ o- - 
 In each of the 14 towns a large amount of the cost of education has hvd to 
 be Wne by the citizens. That the new policy adopted by the <'Overnment 
 has been successful, not only in this re.pect, but in o'^ers, is shmvn by the 
 fact that from each of the Inspectors the department otLucatmn ha^ 
 received information to the effect that interest in education has been Nety 
 largely increased as the result of the Municipalities shouldering a certain 
 percentage of the vost. , i- j 
 
 The expense in connection with education is a difficult subject to be taced 
 and the solution will not be found by reducing sahvnes - l---gj,'^e 
 standard of education. The staff is economical and the department ably 
 
 administered. 
 
 Receipts and Expknditukes. 
 
 I have now Mr. Speaker, reviewed briefly the various heads of receipts 
 and JxpeTditure's, and i'ndicatk the reasons for increase -d decrease^^^a^^^ 
 case mav be I have endeavoured, in a straight-torward and frank .""^"^^r; 
 to pS the facts fairly l^fore you, without any attempt to disguise their 
 
10 
 
 Sr r' hlvT ZeXv"o^-i asThtn f dr "•. '" ^^^^^^^ ^'^ 
 servative view possible upon ^revenue t^.l . ?v. '^ ^'^ ^''^ '"ost^con- 
 
 pointment. I c*cnceive iH^ Je bSLr "t' -H *"' "^ " ^ "° ^''^'^P" 
 
 than to be too optimistic. There^re now '?' *° ""der-estimate rather 
 
 consideration, which largely affect tre7nT^.tTi '"«"^'"' '° ^ t'*^^^" into 
 I shall devote some attentio* ^"'^' °^ *^" Province, anu to which 
 
 DvKlNfJ. 
 
 debt cL^S fn'^onttiofwrtt .^"^T""""' '''' '^ ^^^ ^^^ the public 
 The districts where dXnrln. ".°"«*'-»<^tion and maintenance of dykes 
 
 Meadows, Sun.as and Surrey The trrfif ^ ' ^'""i^f k, Coquitlam, Pitt 
 various districts enclosed by" dykes i 43 44^*^5 fu '^' ^^^^ "'*^"" ^^e 
 he 30th June last for constructfon 5nl^ • '1 7- '"'^ '^^ *"*"' ^'''bility up to 
 i« #757 567, and it i^ e:STj TtilT :T^^^^^^ 
 
 required to complete these wnrL ^ I- additional sum of i?195,000 is 
 will observe, is a larW sum nf ' "^^'^g * »«*«! of 1952,567. This you 
 affecting the' lands afpes^ntasTeS' .T^T^^' ^^« P-"'>- -ndl'ti^on^ 
 indeed for the GovernLit to dearwivr '"^^' ^ ^"'"^ ^'^i^"'* P''oblem 
 interest on dykin<. debenTurefanr "^'^^'^ /ou will presently see The 
 
 fune, 1901, /mounts ttS^ ' ZlZlT '"' ''l'^"?' "P *" "'e 30th 
 Districts have paid in only ^1 stl -i i ^ • ^^'f **""' '^e whole of the above 
 the dyking wo^rks f ro^ L t ntroi of Sn" "-' ^'''■^'' ^'"^^ ''^"^'"^ -er 
 them on under Government super °^^^^^^ "\^^^9«' ^"^ '^^'rying 
 
 money for interest on the coTof tr;o L toT™'"' ^"^ 5\^ '° ^^^^^^^ 
 has only been recouped to the extent of7l 813 «« "" k""' «V^60,94.3, and 
 the dollar. ""^ °^ •'M.Wld.HS, or about three cents on 
 
 Under the provisions of the " Dvkino- T»^i . 
 annual rate sufficient to provide a Jl' ^ ^f^«nt"'-« f^an Act, 1897," an 
 the debentures was to beTnTposed eh,-"^^r? ^T" '!"' '^"^^ redemption of 
 tie purposes of redemption ^^e on^mo^' '^' ""^'^ '^"^ ^^^ «^*de for 
 fi^m the whole of thedvkin.r^;=f-?^ """^^ P*'^ '"to the Government 
 fund account, arnourte'^ ?n ""1 "f '" ''' '''*^ {""^' ' ^«1' -- «^^kfng 
 tection of the debenture holders that a.. i-T""""^' *^«'-«fo'-«. for the pro 
 of the current revenue to p ov de asinkit fun^'^^r;.^'^""'^ he set aside out 
 to do out of the new loan I shall nnf ^J ' tu^ '^"' '* ^■'" ^^ necessary 
 to say that the whole matter of d^a in' wirTe t'TT' ^r^''^''' ^^^'^P' 
 consideration of the Government ind tiU k1 ^j'^'f "^^.^fected is having the 
 Commissioner of Lands and Work tho" in "^T "''^' '"*''"°" '^^ ^^e Chief 
 n^ission appointed to examine into ITl reoo In^V? 'T? ^'•°'" '^e Com- 
 mcumbent upon the Government as " matC^f . ^ ^^?^^ '"^"^'■- ^' *« 
 m a comprehensive way and dev se .neTns f? '*' *" "^"^^ ^'^^ ^he matter 
 
 IS no doubt that a former Gove'^e rw/^n T'T^ '''here 
 
 Fraser River lands subject to overlw d^5 s. ""^^''^'^k to deal with the 
 request of the landholders in thLrdVk n^di^tW '. '''/ ^"i'^' ""^ ** *he 
 endeavour, not only to protect them but fnff?' ^"^ 1"*'^^ *" ^^''ne^t 
 ^%aluable lands otherwise largely useless T h I u'' '".^'*^°'' ^"'^ "^ilising 
 
 handled satisfactorily, and thatViSt J^^^:^:!; ^ Z:^;- ^' 
 
1 
 
 11 
 
 I now come to consider the overdraft, -''-hat with interest on rail- 
 wftv bonds and dyking debentures, it amou. d on the Ist July, UUl to 
 8871 in ^uu wiirren.omber last year that Mr Turner m h.s Budget 
 Spee;h Filleted that it would be 61,000,000, and that at the end of the 
 Hsral vear 1902. it would be «!l,.")00, 000. ... 
 
 I wil give you Mr. Turner • own words: "I w 11 not. cnti.-^- -^length 
 the poircy o^- my predecessor in issuing only half .he loan he .as »uth,.nsed 
 todSini899. I consider, however, that poh y wrong Our credit then 
 wa. g<^ and money cheap. Our three per cents durmg the y*;- we"" a^ p-u^ 
 and in 1898 had been 10:i. Only part, however, was issued, and now it would 
 be d fficult to get 90 for the ren.ainde •. The result of this is that on .W h 
 June next we shall have a liability to the bank of approximately a null.on 
 dollars and by 30th June, 1902, a million and a halt. , .., ^ 
 
 " We hav^e now a Loan Act before the Hou.se which provides alx,ut a 
 million for Public Worls, and there is still power under former Acts to 
 Itut another million, but as I have alreadv hinted, the presen tis a nmst 
 unfa, ouroble time for an issue, owing to the conditions of the ' '»' ^J J.ar^et^ 
 This is clearly shown by the fact that British consols which in loJJ, >.ere 
 112 Ire now 96, whilst British Columbia three per cents, ^hich were up to 
 03 are now on y 90 or 91. The Bank of England rate, in 1S99, abou 2 
 ier 'c^t., is now'4.1, and has recently been .0 per cent and may ««- S'-P; 
 Ijnde.' these conditions it would certainly prejudice he credit « ^he ^m 
 vince to go into the public market for a loan, l^^^*"^ ."'r^*^ "^^/'l^V^ ,7" 
 ment therefore to make arrangements with a chartered bank for an ovei- 
 draf ' pendhiglpplying for a loan. This will place the Government in the 
 favouraUe pJ^itionof being able to issue whenever a good W;.^";;^^ «|^«-; 
 thus removing the difficulty of being forced to i.ssue at a certain date, w hether 
 the market is favourable or the reverse. ' ,. . ^ ., ,^ „^„_ ^,.j ,„ 
 
 It will be .seen how very accurately he predicted to this Hou e and to 
 the coun.ry what the needs of the Prov^^nce wouhl be, tor, ,^1 ad before, 
 the overdraft, 30th June, 1901, was >«871,1-1, and cm .Wth June, 190., 
 
 *^'^Many people have criticised the Oovernment for not borrowing under 
 previous Un ^Acts to cover this overdrat^. The times wen. untavou.-ab e 
 for converting a floating into a fixed loan, tor two reasons. These ^'f *' T 
 unsatisfactory state of the money market, due to the war, a.jd he -ha 
 we would have had to use up power under three old loans, the con_ . ot 
 
 which vary ; whereas a bill will be introduced m due course to extmfe-.sh or 
 consolidate the powers taken to borrow under these^Acts. 
 
 1 can very easily show how the Province has saved money by not 
 borrowing in th^e then^state of tho market. Our stock was then , noted a 
 90 Ind 91 It, is now quoted at 92-94. 1 do not say we can get 93 b.r it 
 ;' a new loan, but I d'o say tha. whatever we do get will be pe. cent^ 
 better than we could have got in December. Now we pay the bank 4 per 
 cent on our overdraft. Our lixed .lebt costs us 3 per cent., so that the 
 difference between floating a loan now compared with December works out 
 
 as follows : — ;j.>0 aaa 
 
 2 per cent, less on #1,500,000 -k^us 
 
 1 per cent., 6 months, on ^1,500,000 ''''"" 
 
 ... . Tj • .....?22,500 
 
 Saving to Province ' 
 
12 
 
 is aii^Ltc^rd :ir;„tur«iraLV' VtrTra -^'^^ ^^« — 
 
 30th. 1902. it is estimaSTwHl^ «" J68,'oOO "^ '^' "'^"' ^^*'' "^""^ 
 
 New Loan Proposed. 
 
 Hnd to provide for works of n^ ^"'^'"T 'I" '''"'*«'' *« "««' ^he overdraft 
 at the present irirftyurjl^'^^T^ The Government hj^ 
 
 of 1901, to issue o,* or several In *' ^"^^ including the Loan Act 
 
 ei,878,952.00. TheTJLtrar: n^f^t^ '" '^'^ •'««-««»^ ^ 
 
 Under the Loan Act of 1891, £50,000 " 
 
 under the Loan Act of 1899, £234 -'30 
 
 Praser nter Brid^" ^^' '^^ ''''' ^'^^^^^0 for the construction of the 
 
 dition^gornTngl'San^^^^^^^^^ '^ "f,""'^ T" *«^'-*- '^"^ ^^e con- 
 
 the posiLn has been iru„rtilct^rvT'/'^"''*'^^^^ ''"^y' «° ^^at 
 
 these reasons, and owing t^ThesLT^tLT *" '^' r^^'^ ""^''•^«'- *^°'- 
 ernment last fall came tS consider th«- ."^^ ""''*'*• '^^''^ '^^^ «ov- 
 
 to defer action untTtirmS of th T'","^ * '^" '* was decided better 
 could be submitted repS nrevinJ T^^'l'^'""' ^^^"^ * "«^ ^o*" Act 
 authority was con^rned^^nd^taE .^*': ^''' *" '« ^*'- ^ *he unused 
 to the amount reou^d namely tLrl^n-"*^, n '''"" ^'^ ""'"''^J^ "«- loan 
 ow.ng to advicesLmUdotVhe "mS^^ ' '"*^' T' "'^«' ''''' 
 
 such as to justify a flotation Thl^J / **>« money market was not 
 
 Columbia seiuritiL, buftsecurli s.ener"l *PP^^ -P«"«»y *« British 
 
 of the war, which had advanced the nrf^^^^^^^ 
 
 unsettled financial credit The Governn-nf TlT '^"^ '" ^'""^ ">— « 
 
 at an early date a measure as SuiioZ7 7' therefore, proposes to submit 
 
 to issue a loan to Zeltenl:{Zt''''^^y^^^^^ 
 
 dollars, subject to the us^a condLo„rwkh n'" "\'^''' """'^" "^"^ * ^^'^ 
 
 or otherwise as may be deemeTrnor„;i k^T ''^ '''"^ "' inscribed stock 
 
 market. It may Z that under thl '^^'^^^^le when a loan is placed on the 
 
 borrow in New York or omeoh-^P'"'""'^-""^'^ '' "«"'d '^'^ -*««'• to 
 
 depend upon the besVadre ^ t tuJnlTa'Tt^' '"h '' "'"' 1 ^''"^•^•^' ^" 
 On the question of issuing another In«n' T^ ^^^ Judgment of financiers, 
 some of^ vhom are fin^dal men ind nth ^T^ ^^' ^''"" ^^''^ ^y critics, 
 financial condition of th" Province Ij^''! T^V^''" ""'' <^">"««™ing the 
 ^*nd also in London, wl^re Xrse ^HH "" • ^'f . ^"" '^'^ '" ^^'^ ^«""fy 
 effect upon the credit of tl p^^: ^.r^^tou^ the ^fl'^^*'' '^^^ I'' ^''''''' 
 dition of our finances, and it has even been hinted aTth T"'''^''''''^ ^""- 
 verge of bankruptcy. Now in the tiZt-^t ''l • i. *^*^ "^^ ^^""^ on the 
 the Province in London wLre our i^^ ^l !' ''l'^ '° '■^^^'' "" '^^ ^"-^dit of 
 loans have in the past ITn'rC ^ted it'' I '^"^'"^' ^"^ ^^^^ "- 
 of the various colonial securitS, for th« . « ^^"^ * comparative list 
 taken from the official stock nuoLtronsT^^^^^ five years, which have been 
 credit, so far from being ^raTeTuZ.I ^^ . T" '^T '^^ * ^'^"'^^ ^^at our 
 fluctuations of the stoc\ ^ar^k: ^tt tp^ 'd"d °"°"'^' ^"""^ '"'^^^^^ 
 .;onsols and colonial securities acco^Xl. „« T 7'' '" ^^^'P^^hy with 
 
 ditions which affect all similarly ^ '^^ '"^''''"* ^^ ^^'"^'^^ ''y con- 
 
13 
 
 IS>I7 lis»!5. !»«»• Vmi. 11*11 to Jiini'.W). 
 
 Hltth. i/w. Hijch. Low. Hlifh. l-<>w. HIkIi. Im*. Hl|{h. Low. 
 
 Consols 1134 11« H^i 1<«^ '"4 »"^ '<''"'l ^^ ""^ IT: 
 
 \Tw. n.3p.c.. 104 lOOA 10:H ».V 101 A ft«V "01 »H mi 9H 
 NewZealpnd ... KW W)l 101 .\ 9«.\ WM »*i »'* »« »**i? "'< 
 
 ^e^ZT::..:: um »7i mmj iwi- 9»5 ;« m.a j«.4 iu^ ^ 
 
 .South Australia 113^ 1(J9 llO.i l(».-.i l.W,' H4 10, y UK, »4i »-J 
 
 Victoria '*'^A ''•'i ''^ "'^^ 
 
 l)on.inionofCana.la.. !OS.i 102 10" W. 1.4^ m m 97 lOlA »«l 
 British Columbia ... . lOT.J 100 I04.\ »S UH-i 91.i JM ftji J^J JJU 
 
 (Meilec"''''* ■■■■::■ ay^ im ai^ oi' 'jU' ssi o«^' ss s».s m- 
 
 Ceylon. ..'^^.. ioTi' i04 wl 110 104i lOo' 101 9S ^ «7.i 
 
 The present price of consols is •)3.^9.j'{ and of B. C. securities 93-94 
 (since risen to 96). From 3Lst December, 1900, to .Ust Deceml-er, 1901, 
 consols dropped 3i points and New Zealand 3 per cents dropi^d 3| points, 
 while B. C. 3 per "cents only dropped 2 points. 
 
 You will see, therefore, Mr. Speaker, from these (juotations that so far 
 from British Columbia securities beir ; now, or at any time, discriininated 
 against, they have occupied the same relative position throughout. This is 
 undeniable, and it is nothing short of, I was going to say, criminal, t». 
 endeavour to injure our credit by such ill-advised criticisms as have been 
 made. Comparing our stocks with consols, wv find that British Columbia 
 securities are actually frc \ i.', to 2 per cent, iii a better position than they 
 were tive years ago ; nd, of course, consols must be our guide ii; matters of 
 such comparison. We lUst borrov. in order to develop, and to pay interest 
 o> cost of developmen we must tax. We have, however, the sources of 
 revenue in sight, and in 1903, when the Finance Minister rises in his place 
 in this House, he will be in a position to state that he has no deficit to face. 
 The financial ability and status of a Province must be determined by 
 several conditions, viz. : — 
 
 Progress and development ; 
 Amount of liabilities ; 
 Revenue-producing powers ; and. 
 Ability to meet increasing demands. 
 
 It will be seen that British Columbia has developed rapidly and sub- 
 stantially in population and production, and that in the face of many physi- 
 cal obstacles. Its per capita debt is largely exceeded by that of the chief 
 colonies of the Empire, and by many of the principal countries of the world. 
 Its revenue, derived from a very low rate of taxation, had it been limited to 
 actual necessity, would have been more than sufficient to meet expenditure ; 
 but the phy JaX character of the country demands extraordinary outlays in 
 order to furnish means of i^cmmunicatJon, promote settlement, and provide 
 facilities for development— in other words, rendering resources available. Its 
 ability to meet increased demands is dependent upon an equitable return of 
 its revenues to the Dominion for local purposes, to enable it to develop its 
 enormous resources and the large per capita wealth also dependent for reali- 
 sation upon further development. 
 
14 
 
 Devklopmknt or Province. 
 
 folio Ji'i'g:'!"^ '" development of British Columbia i« ,hown by th 
 
 1881. 
 (cenwiB.) 
 
 .Nurnber of miners 2 79:* 
 
 Number of fishermen ....... l^'soO 
 
 Number of farmers 2381 
 
 Number of houses Q99-> 
 
 Population ; ■ ■ 49*459 
 
 Jietvnuf,-- 
 
 1891. 
 (cen*U8.) 
 
 4,591 
 
 3,798 
 
 o,874 
 
 16,775 
 
 98.175 
 
 1001. 
 
 10,000 
 23,000 
 10,000 
 30,000 
 177,272 
 
 1871. 
 « 192,000 
 Export* — 
 1871. 
 *1, 912,907 
 Impiirtx — 
 *1, 790,352 
 
 1881. 
 1^397,035 06 
 
 1881. 
 
 2,255,753 
 2,489,246 
 
 I8))l. 
 
 *1,038,237 95 
 
 I8»l. 
 
 6,199.280 
 '•',477,411 
 
 «3,702,459 «4.744,999 
 
 fiet^enve, Post OJice— 
 
 if"';; 1881. 
 
 *i4,<05 $22,5 19 
 Jievemtt;, Customs — 
 
 353,865 601,000 
 By Province to Dominion— 
 
 376,318 695,330 
 Coal Mined — 
 
 '^"4- 1881. 
 
 . ^o"f. Tons. 
 
 81,000 228,000 
 
 #11,676,691 
 
 !8»l. 
 $106,875 
 
 1,344,356 
 
 1,862,145 
 
 1891. 
 Tons. 
 1,029,097 
 
 ltN)l. 
 
 #1,605,920 
 
 1001. 
 21,645,000 
 
 11,137,436 
 
 832,782,436 
 
 1901. 
 1250,000 
 
 2,364,000 
 
 3,391,180 
 
 1001. 
 
 Tons. 
 
 1,692,000 
 
 ^ff.Qregate Assessments 
 
 Num£rfSls--*^''^-^''T '''''''T. '''''''^''' 
 Number of teachers.. U6 24^ 'Ht 
 
 Number of pupils 5,345 li,4S5 03 6i? 
 
 ^nlTitels^" ^^*''' ^^^^-^^^^' *here were spent in- 
 
 EduSltion .■;.■.■; ^ 528,000 
 
 Roads, streets, bridges an<l wharves ::.::.: If^nl^t 
 
 Works and buildings . . „' ^'^"^ 
 
 Surveys . . ^ 2,425,280 
 
 J ... . 330,473 
 
 to the ^uSt^^Nraimo rI;;:^^^ "*^ ^/ '"""'^ -^ «"--^«« 
 
 . KootenS, .els^r^r: ^^ZX^^TsLT^^^ 2 1^ 
 
16 
 
 Victoria & Sidney, the Columbia it Western, and the Crow's Nest PaHS 
 Railway Company, all of which are in actual operation. Assistance has also 
 been guaranteed to the dyking and drainage of New Westminster District, 
 for work being already constructed and that under construction. 
 
 Public Deijt. 
 
 The net debt of British Columbia on the .Mst June, 1901, was 
 $6,407,757, which per head was «:i«.38. In t»rder to ascertain our liability 
 we must i-ompare this with the countries whose credit is undoubted. From 
 the latest available returns I find thitt the net debt per head of; 
 
 Australia *'-6" ^ 
 
 France 151 .'IG 
 
 Argentine |J^ ' [) 
 
 United Kingdom 75 47 
 
 Cape of (JckkI H(.p«^ ♦'" -^^ 
 
 Austria 65 86 
 
 Belgium 75 99 
 
 Camida -^9 00 
 
 Revenue and Taxation ok Mines. 
 
 Comin<' to the question of revenue from all sources, it has increased from 
 $192,000 in 1871, to $397,03.^ in 1881; $1,038,2.37 in 1891, and in 1901, 
 •isl, 605,920. There were on the 30th day of June, 1900, outstanding rentals 
 due:— On timber leaseholds and rentals, .«90,000 ; on lands sold by public 
 auction, on unsurveyed pre-emptions, and surveyed pre-emptions, $540,000. 
 
 There were on the 3l8t December, 1900, $520,000 due for unpaid taxes, 
 making in all a total of $1,150,000, 50 per cent, of which may be regarded 
 as a good asset. These arrearages largely accumulated during the recent 
 deep depression, anc it has been considered advisal>le to permit the gradual 
 payment of arrears of land payments and taxes, which is being done. 
 
 During the session of Parliament, 1900, an Act was passed enabling the 
 Government to assess mines two per cent, on the value of output, less freight 
 and treatment, and for the year 1901-2 and hereafter a very substantial 
 revenue may be anticipated frou\ this source. 
 
 This revenue had been derived largely from the llossland and Boundary 
 districts, and the law had lieen unpopular, as owners claim their low grade ores 
 will not stand such a tax. It has been suggested to go back to the assess- 
 ment plan, but that was considered impracticable by the best authorities. 
 A similar proposition in the United States was thus spoken of in the 
 Engineering and Mining Journal of March 15th, and the inference to be 
 deducted was decidedly favourable to our system. 
 
 "The special session of the Colorado State Legislature has been devoting 
 its chief attention to the framing of a revenue law which will meet the 
 increasing needs and expenditures of the state, and also fairly distribute the 
 weight of taxation. With this purpose in view, the question of taxing 
 mines naturally takes a very prominent place; hence, these deliberations 
 have been followed with peculiar interest, and not a little anxiety by those 
 identified with this great industry. 
 
10 
 "After exempting nil mine, from taxes of any character for a «»».*,! 
 
 Virion . ?r,.. T«- l^'1'n.K mining ».,t» „f tl,e U«ky Jl,.unti.in 
 
 tTrJ'T/f'^n '*'"'"' '^*'^^"^^'"'">*''*'«"«h a doubt WHS ixSd ai to 
 
 .i...n. i„«„«, i;,„,„ ,„ ig«el;:r?hT„!:r;„\TLtii:rpr'.h« r. 
 
 eitl.e, rLf.!!L!^ u ' ■ }, " *"8hly objectionable and deserves to be 
 
 eithe.^ defeated or substantially amended by the Senate : - 
 
 Ihat all mines and minins claims bearina an\A «;i..».. i«„ i 
 
17 
 
 jind taxed like other property, iicronliiig to lh«' v»Iup tlw-reof ; and in HHcer 
 tttining Huch value the AwtHMor fhail, in addition to other nHjuirenientM of 
 thii Act, Ukfi into consideration the location thereof, the proxinuty to other 
 mines or mining clainiH, and any other matter which aii\y tend t«» awist him 
 in arriving at a fair and e(|uitahltf valuation of MUch property. 
 
 "Ah an inntanceof the way this section in t-onHidered hy the mining men, 
 Mr. James F. HurnM, manager of th»^ Portland Mine, is reported to have can- 
 celled an order for ^^.'iO.OOO worth of new machinery, and to have said that if 
 the law as al>ove <|Uoted goes into effect the mine will lie cl(me<l, and kept 
 closed, until the law is rp|M aled. Colorado cannot afford to have such an 
 unreasonable provisitm in u.s Statutes." 
 
 I ha<l a proposal fn>ni one of th«! largest mining companies in the Koot- 
 enays, and the plan placed before me by the manager would not only, in his 
 opinion, increase the revenue, but populari»«<' the (iovernment in the mining 
 districts. T will read the memorandum submitted by him. He says: 
 
 " The plan proptisetl as a substitute for the _' per cent, tax is to tax all 
 mineral claims, excluding surface improvements. The total amount to Iw 
 raised is to l»e a definite sum, deternnned each year by the Lieutenant 
 (Jovernor in Council, who shall, when the assessment rolls are complete, levy 
 the particular rate necessary to secure this sum. 
 
 " Details of assessment should l)e left to the Assessors. All that is 
 wanted is to have unifornuty of method in all districts, and Assessors will 
 naturally and necessarily do this. 
 
 " The advantages of the plan are as follows : - 
 
 "I. It relieves the (Jovernment of its ditticulties : 
 
 "(rt.) By giving it more revenue than the J per cent, tax, and a iletinite 
 
 sum which may l»e counted upon : 
 "(fr.) By leaving the amount and rate for each year entirely in the hands 
 
 of the Government : 
 "(c.) By securing the credit for reforming a sjiecially unpopular and 
 
 irritating measure. 
 "2. It relieves the mining industry from the peculiar evil of the 2 per 
 tent, i-ix, which is the fact that as lower grades of ore are rained the tax 
 seizes increasing percentages of the net profits. This stops or limits all new 
 enterprises for utilising low-grade ores. 
 
 "3. It not only relieves the industry from this evil, but will, moreover, 
 actually benefit it by checking another peculi.ir evil to which it is subject. 
 This is the fact that ihe great majority of claims are held by idle speculators 
 or stock companies, who are waiting for some other claim-owners to develop 
 and thus create a market for their properties. They will not develop them- 
 selves or make terms which will permit others to develop their claims. As 
 everyone knows, the annual assessment work is a farce. Thus, each mining 
 district, after the boom, passes into a state of hopeless paralysis from which 
 there is no relief. 
 
 " These owners practically , -axes, although if asked to sell they 
 
 demand 810,000 to 8100,000 a value of their unimproved claims. 
 
 Practically all the taxes. Dominion and Provincial, are now paid by the few 
 ownc^ who are developing and improving and trying to put their claims on 
 a paying basis. 
 
18 
 
 r.al »ut,. Th«r. ,. ^mething to be «.id in th..t l«l,.lf, 'ut I .rZilJ 
 
 :''t;X: r.r :o'ri:r::'„t'':;;r^M'";i:u7r!::':rrif ■■' 
 
 hitherto »)eeri exemot whir«h fnr loni / """'"ver island, whuh had 
 *6r)010 ' "^ ^^'^ '■"*•*"* priKluction, was 
 
 «450,000 per annum ' ^"^ ''">■■ ?"«!"«'»« • revenue of 
 
 coant^XI wh oh frtTZt , """* "" '•'!''"' y^' "'" "»°'"l"y 
 
 outpnt^of ove; ?3'i?,X:'s,"s.'nrnrL:,,'r'rtirai^^^^^^ 
 
 wnt. *'"'P*'^J' * P**^ <=«'»*•> income, 1 to 3 J per cent.; wild lands, 2J per 
 
ID 
 
 ..♦ 
 
 It hax •m-.ii il«f iiiei) in the |..»Ht wim' to iiiiiintain an low a Hgurf as potwi- 
 l»U' for tlif purjMKHf olf •'ncourii;(iiiK iiivt-Htiiii'iits of riipital, ami for th« op<>ra 
 lion of tnuli', intiuHtrv ami itimnu-nv, t>iit it will Ik* olwrv*"*! that thniw r»t«'M 
 
 i^ht hi 
 
 i\ without i» 
 
 hiinli 
 
 onii". 
 
 litfconi 
 
 I'Hovisi i\i, Wkaltii. 
 
 |{fHp»'. (iiij{ th*" wciilt'i of the IVoviuie jkt heail of thf i»o|inhition 
 
 Mulhill iiKluflfs in his t>«tiiniit<' of tli*- wi'.ilth of niition.H : birwlx, cattle, 
 hoUM«'H, furmtui.'. riiilwiiys. shipK, uHTchiiiMlist', bullion, KumliifH, etr. Takin^j, 
 th»'n'foi-.., the \iiiut' of MMiie of thei*«i fur ihitish Coiunihia we timl the value 
 of 
 
 .MiKceliuneous aiul indusliikl cstahlishMients ^ 1H,0<M>,()00 
 
 Kl.'ctiii- li){ht and ruilwuys :J,r)0O,(XM) 
 
 Tel..phom. I,0(H),000 
 
 Water workH 2.r)00,000 
 
 H lilways and telegraphs «'»'», r>(K),<)00 
 
 SteaniNhipsund navijiation ;},.»00,000 
 
 Mint's and smelters (inilu<lin<,' eoal) ')(),( )00,0(X) 
 
 Sealing, salnion canning; and Hsh eurinji .'i, 500, 000 
 
 Churches and sihoolH 2,000,000 
 
 lUnk deposits _H,(»00,000 
 
 Munii'ipal asses.-nients ... ;)H,O0O,O0O 
 
 Municipal pultlii- works and Ituildiiiys 1,000,000 
 
 Frovineial puMic works and l)uildin;,'s 0,000,000 
 
 Provincial a.•,.■^eHsn.ents 10,000,000 
 
 Donnnion pnl)lif works and laiildings .'{(OOO.OOO 
 
 All connneroial establishments !t,r)00,000 
 
 Tiudjer, leases and privately owned { vi !ue estimated on 
 
 (juantity of standing timber) (15,000,000 
 
 .*.J40,000,000 
 
 The alMive sum of .^.SiC-^OO.OOO represents a i)er capita wealth of .«il,9IO. 
 But eliminating >!tO,000,()00 for duplieations in as.se iients and public 
 property, the prr capita wealth is .*1,710. 
 
 The •' Mulhall Harper Comparative Statistical Tables " give the fol 
 lowing in regard to the principal countries in the world, 1?<'.)6 : — 
 
 IVr CnpitH. 
 
 Australia •Sl,229 
 
 Cnited Kingdom 1,450 
 
 Oenmark 1, 104 
 
 Germany ' "t" 
 
 France I.-IO 
 
 Holland >^"*^ 
 
 United States 1.123 
 
 Canada 775 
 
 The above real property, personal property, wild lands and incomes are 
 taken from the returns of the Government Assessor, and the municipal 
 assessments are from the returns of the various municipal officers. 
 
w 
 
 There are 1,450 miles of railway in this Province, which oost, roundly, 
 $60,000,000. 
 
 Of the public lands of the Province, the area of which is 65,000,000 
 acres, only about 26,000,000 acres, or one-tenth of the whole, have l>een 
 alienated, including Crown grants, land subsidies to railways, th(! railway 
 belt of the Dominion Government and all other alienations. 
 
 As the Indians, who number about 25,000, in round figures, do not dwn 
 property, and are practically wards of the state, if they are eliminated from 
 the population, placed at 175,000, leaving 150,000 upon which the estimates 
 should be based, the per capita wealth would l)e raised to $2,000. The 
 Indians, however, are in possession of a large urea of land included in their 
 various Indian reserves, which is among the most valuable in the Province. 
 Nor does the above statement for British Columbia include immense tracts 
 of unalienated lands of which the Province is still in possession -mineralised, 
 agricultural, pastoral and timber lands which in the aggregate, as already 
 seen, amounts to about 265,000,000 acres or a public domain of 200,000,000 
 acres still untouched. 
 
 Per capita trade (population 1901, at 175,000) is .*!1S0. Compared 
 with this are : — 
 
 Holland $262 
 
 Australia 169 
 
 Switzerland 121 
 
 Great Britain 98 
 
 Belgium Ill 
 
 Denmark 75 
 
 Canada 71 
 
 France 40 
 
 Germany 41 
 
 United States 29 
 
 The population upon which the various amounts of per capita commerce 
 are based in the above are those of the census of 1890 and 1891, whereas 
 British Columbia estimated on the same basis would have a per capita 
 commerce of $3^0 instead of -$180. 
 
 But in addition to these considerations, the Province has assets of its 
 own which represent value received. A statement I have had prepared 
 shows that the nominal assets of the Province are $14,142,900. This, of 
 course, includes public buildings and schools, of an estimated value of 
 $2,090,000 ; 6,500 miles of road, with an approximate cost of .$6,500,000 ; 
 5,000 miles of trails, with an approximate cost of $1,000,000 ; wharves and 
 bridges, $3.36,000, or a total of $9,036,000. These, of course, cannot be 
 called assets in the ordinary sense of the term, because they are not realisable 
 in the ordinary way, but they represent value, and in the same way as the 
 works of the development of a mine represent value, or the improvement of 
 a farm, and would have to be undertaken if not already in existence. We 
 have in addition to that assets more or less realisable to the extent of over 
 $5,000,000, so that the Province is far from being in a position which some 
 of its financial critics would have the public believe. As a matter of fact, 
 no other Province in the Dominion has so much available public wealth at 
 its disposal or anything like the same private wealth per capita to be drawn 
 upon in case of an emergency. 
 
21 
 
 TlIK FiSIIKKlKS. 
 
 Wcliavealso another asset,' which appears in our Estimates t».i« v^ar 
 f,3r the tirst time, ami which up to the present tin.e has been .••♦^g'*"»«d 'vs 
 exclusively the property of the Dominion. I refer to our hsheries In the 
 <ilebrOtfick7ua'^ of the 15th February, 1902, I tind the following 
 oaraaraph in the Speech from the Throne. ,,../, „„* 
 
 "The negotiations opened some time a«o with the Dominion Coverniuent 
 to secure the recognition <.f our rights to the fisheries in territorial waters of 
 the Provmce, have been continued. My Government has f"]; ^er subm ted 
 to the Federal auth<»rities two impt.rtant claims connected witl. this 4"^«»"n 
 of fisheries; one for the reimbursen.ents to the Province of the an-ounts 
 collected since 1867 for fishing licences and permits; the other for its share 
 of the indemnity paid by the Tnited States for the privilege granted tu, 
 citizens of that country by the Washington Treaty to fash along ""^ ^^ «« , 
 New Brunswick is also making a similar .lann for the recognition of 
 rights to fisheries in the te.ritorial waters. What applies to thes^ two 
 Provinces and other Provinces similarly situated also applies to British 
 Columbia, and if the claim be recognised, as we think it will, a very important 
 addition will be made to the resources we have at our disposal in the hsh- 
 eries of our rivers and inland waters. The revenue from fishery licences and 
 also from a tax upon the output will materially imburse the Treasury. >Ve 
 already appreciate fully the value of the salmon fisheries in the Iraser and 
 other rivers, and we believe that in the development of the deep sea fashenes 
 and the fisheries of our inland lakes, an additional fashery output wdl be 
 obtained, as great, if not greater, than that arising from the salmon canneries^ 
 We know the value of the <leep sea fisheries on the Atlantic Coast, and we 
 h.ave reason to believe that the food fishes of this coast are more extensive 
 and varied. In Ontario and Manitoba the Hsheries of the lakes are of large 
 an<l increasing value, and we look forward, when the interior mining towns 
 have grown to greater importance, to see a valuable fashery industry affordt'd 
 by the interior lakes and rivers, realising millions of dollars annually. 
 
 I say, sir, considering all these great assets which we have at our disposal, 
 there is little room for the cry of "blue ruin " which has been raised in some 
 
 fill *l,t*t'(^I*S <• 
 
 ' I have from the facts set forth in the foregoing a very complete refuta- 
 tion of the attacks on our financial credit and ability to sustain a loan. I 
 have already referred to the requirements of a growing country like tlus^ is, 
 and while it is necessary to observe the strictest eccmomy in the adn.inistra- 
 tion of public affairs, where our obligations are great aiid our re.iuirements 
 so numerous, at the same ume if we are to progress in the future and realise 
 upon the wonderful assets with which nature has provided us, we cann.^t.stop 
 short at the present time and say we will build no more railways, no more 
 roads or public buildings, or expend m.mey in developing our many industries 
 because upon these devel..pments depend the revenue which we must expect 
 
 in the future. 
 
 Bktteh Terms. 
 
 It is true that the (iovernn.ent has gone to the Dominion Government 
 with a claim for better terms, and a case has been presented, based apou, as 
 I have already pointed out in this House, several things. 
 

 22 
 
 First, the great disparity between the revenues which we contribute to 
 the Dominion (iovernment and the expenditure we receive in return, which 
 for thirty years up to the .JOth June, 1901, amounts in round numbers for 
 contributions, to f41, 771,095, and for expenditure in this ' Province to 
 
 $28,170,828. 
 
 Second, that on account of the physical contiguration of the country 
 and the peculiar conditions which exist, the cost of administration is many 
 times greater than it is in other provinces. 
 
 Third, that on account of our remoteness from the wholesale centres of 
 the East, from which we receive a very large jwrcentage of our supplies, the 
 freight rates in)pose an additional burden which is not felt in Eastern 
 Canada. 
 
 In view of these considerations, which, as I have previously shown, 
 induced the Dominion Government to grant better terms to Nova Scotia, 
 we think we are entitled to special coisideration for treatment at the hands 
 of the Dominion Government, and to a largely-increased subsidy. We 
 believe we have proved these propositions up to the hilt, and that at" least up 
 to the present time there has been no successful, or, in fact, any contra- 
 diction of what we have set forth. " Ri^rht is might and will prevail," so 
 we have been taught to believe, and we are confident that sooner or later 
 these claims will be recognised and in a large measure, at least, provided for. 
 The case which was presented at Ottawa last session by the delegation is a 
 very strong one, but it has been supplemented, and wi'll be still further sup- 
 plemented by other and stronger representations. As has been announced 
 by the Premier, Sir Wilfred Laurier has agreed to a second conference, 
 which will take place this fall, at which, with more leisure at their disposal, 
 the two governments will go more fully into the case. In the meantime it 
 IS not for this Government to cease in the work of development, because 
 delay in important enterprises and important policies would simply mean to 
 set back the country so many years more. 
 
 VICTORIA, B. c. 
 Printed l.y Ku marh Wolke.ndkn, ITinttT to the Kin>t s Most Excellent Majesty. 
 
 1802.