IMAGE EVALUATION TEST TARGET (MT-S) ^ ^ A Mm z ^ 1.0 I.I 1.25 ■ 50 ™^* 2.5 IIM IM 1.8 1.4 IIIIII.6 V] signifia "A SUIVRE ", la symbols V signifia "FIN". Maps, platas, charts, ate. may ba filmad at diffarant raduction ratioa. Thoaa too larga to bo antiraly includad in ona axpoaura ara filmad baginning in tha uppar laft hand comar. laft to right and top to bottom, as many framaa aa raquiiad. Tha following diagrams illustrata tha mathod: Laa cartaa. planchas. tablaaux. ate, pauvant dtra filmte ^ daa taux da reduction diffdrent^. Lorsqua la documant ast trop grand pour dtra raproduit an un saul clichA. il ast film^ di partir (Ja I'angla supAriaur gaucho, da gaucha h droita, at da haut an baa, 9n pranant la nombra d'imaga? n^cassaira. Las diagrammes suivants iliuatrant la mtithoda. 1 2 3 1 2 3 4 5 6 FINANCIAL STATEMENT OF THE Hon. Geo. W. Ross, TRKASUREK OF TKK PROVINCE OF ONTARIO, DELIVERED ON THE 8th MilRCH, (90ef^ IN THK LEGISLATIVE ASSEMBLY OF ONTARIO, ON MOVING THE HOUSE INTO COMMITTEF. OF SUPl'LV. TORONTO : WARWICK BROS. & RUTTER, PRINTERS. 1900. FINANCIAL STATEMENT OF Hon* Geo. W. Ross, PREMIER AND PRGVINQAL TREASURER. ^•o Legislative Assembly, Toronto, Thursday, 8th March, 1900. Mr. Speaker, — In rising to move that you do now leave the Chair, and that the House resolve itself again into Committee of Supply, I desire to say that for many reasons I regi-et that the duty which I am about to discharge devolves upon me. My predecessor had given so . much attention to the Treasury Department and had so fully mastered all the financial problems of the Province, it seemed a pity that :n the organ- ization of the Government a change of Portfolios was necessary His statements were so lucid and were so aptly expressed that it is almost a hopeless task on my part to try to fulfil the duty I am about to attempt as satisfactorily as he did, 1 am glad to believe, however, that the circumstances under which we are about to consider the financial condition of the Province of Ontario are so very favorable. We have a bouyant revenue. We are submitting perhaps larger estimates of expenditure than have been submitted for the last few years, and we have no hesitation in asking this House to consider increased ex- penditures in various directions, from the fact that our revenue is fully adequate for all proposed expenditures. 4 FINANCIAL STATKMENT Canada is PiiosPEKors. It will be noticed from the public press of the country, from the reports of different Boards of Trade as well a.s from the hopeful attitude of business men, that Canada has entered upon an era ot prosperity, hopeful alike to the political economist and to all who, like the Members of the different Legislatures, have to deal with public affairs. I do not want to entrench upon the domain of Dominion politics or to diLCUss questions of trade with which the Dominion Parliament is specially charged, yet I think I can be fairly excused if I should take a hopeful view of the financial position of the country, and particularly of the Province of Ontario, which comes more immediately within the supervision of the Treas- ury Department. It is therefore fitting that I should con- gratulate the House upon the development of Canadian trade and the vast development of all our industries during the last few years, I shall not enquire into the cause of this development nor into its effect upon the balance sheet either of the Province or of the Dominion. I recoL'- nize, with pleasure, that our working men and artisans are, as a rule, more fully employed than :n former years, that many of our factories are running over-time and that new markets are being opened all over the world for the produce of our factories, our forests and our farms. The fact that our exports had risen from $113,(J38,8(>3 in 1894-5 to $158,896,905 in 1898-9, and that our imports during the same period of time had risen from $111,011,682 to $162,764,308 necessarily calls for a large increase in our banking institu- tions and all concerned in the transportation of merchandise of every kind. In this way investments made in our railways and our canals have become remunerative, and shipping that was comparatively idle for many years now finds abundant freight. In regard to the produce of the farm there hay been an ex- traordinary increase in exports in the last ten years. In 1889 we exported of butter 1,780,785 pounds, valued at $331,958. Last year we exported 20,139,195 pounds, valued at $3,700,- 1^ . HON. G. W. KOHS. 873, an increase of tenfold Of cheeHe, ten yejirs ago we ex- ported 88,534,837 pounds, valued at S8,915,084. LaHt year we exported 189,827,830 pounds, valued at $16,776,7(35. This shows an ireroase of more than twofold in the quantity of cheese, and about twofold in the value. Of bacon our exports ten years ago amounted to 3,87'9,788 pounds, as against 111,- 868,938 i)Ounda last year: The value of our exportH of bacon ten years ago was $361,070, as against a value last year of $9,9.53,582. This in -ease in the exports of these three articles of produce is encouraging, and as agriculture lies at the foun- dation of our Provincial, perhaps of car national, wealth, must be very gratifying to every person interested in the prosperity of the country. (Ministerial applause.) Another instance which shows the activity of business is the fact that the Bank circulation which ten years ago was $32,207,144 had risen last year to $41,320,083. Deposits in chartered Banks amounted ten years ago to $134,650,732. They have now reached a total of $272,592,086. The railway traffic receipts in 1889 amounted to $42,149,615; last year they were $59,- 715,105. The number of failures ten years ago was 1,747. In 1898 they were 1,305. The liabilities ten years ago amc ' I $14,528,884; in 1898 they were $10,333,630. Evt ' tliese items contains much food for reflection. The ' ^ the sta^^ement with which I started at the outst there has been a great revival of business, and that enjoying an era of prosperity which must be gratifying to every honorable Member in this House. Minis- terial applause). C(nni'ANiEs Incorporated. Another circumstance, perhaps not so well known as the statements already made, is to be found in the records of the Provincial Secretary's office In 1898 that department issued 244 charters for the incorporation of joint stock companies. Last year 346 were issued. In 1898 19 supplementary letters patent were issued ; last year, 37. In 1898 twelve licenses for extra-Pro . incial companies were issued; last year, 16. The totals of these three classes were 275 in 1898 and 399 in 1899. m T 6 , FINANCIAL STATEMENT But the capital stock is 11, o extraordinarv feature connected with the isHue of these cliartors. The amount of the capital stock represented \>y the letters patent issued from the Pro- vincial Secretary's Department in I8i)8 re.iehed a total of ^85,091,177. The capital stock represented hy charters or letters patent issued in 18!)9 totalled Sir)e,()9G,S8r), thus show- m^ the contidence those who have money to invest have in the various projects which are upeninif up to them, whether in the devel(»pment of our ii;^ricultural resouices or in the development of our industries. (Ministerial applause ) ReVENUKS OF THK PROVINCE roR I .S})9. Having said so much in regard to tie evidences of pros- perity that surround us, let us turn uonv to the revenues of the Province of Ontario, lion, gentlemen have these figures on theiv desks, and they can see for themselves where we stand in regard to receipts and expenditure : — Subsidy $1,1 l(i;72 80 Specific grant 80,000 00 *! ,19(1,872 80 Interest on capital held and del)ts due l>y the Dominion to On- tario $ 272,414 48 Interest on investments 28,208 78 ;i00,083 26 Crown Lands D(^partment — Crown hinds $ 87,280 72 Rent re Crown lands 1 I l,l(i}) :]2 Railway lands 78 9H Clergy lands 3,025 93 Common school lands !U7^> 59 (Jrammar school lands 1,737 90 University lands 3,019 40 Woods and foresCs 1,092,848 64 Mining licenses . 4,154 00 Miscellaneous 1 ,638 03 Refunds 29 50 ! 315,308 02 HON. G. 'V .OS. Al£ HUB, tnxes . . . . Law stiiMips Licenses EdiiCHtion Department Salt' of lands at Toronto L. A Fisheries Hepartnient Provincia' ax (62 V^ic, ch. 8) Snccession dutioH Pnblic Institutions revenue — Toronto Lunatic Asylum # Mimico " 2' :<,r)9() 08 ri5.-2:u 28 .S7.S,SC!i SI 50 154 87 9,2()6 53 a0,940 79 217,059 94 150. IK 50 « London Hamilton Kingston Brock ville Orillia Reformatory f( : Females. Boys . . Blind Institute Deaf an9 No. Daily Av'g.Pop.i No. 1,461 138 125 7 3 1 1 Daily A v'g. Pop. 1,724 12 5,088 627 262 129 5,10G Institutions Receiving Government Aid. Class. 1872 1899 N( Hospitals Refuges Orphanages Magdalene Asylums. Totals^ 8 4 12 2 26 Admissions. I No. Admissions 2,814 448 807 74 50 38 i 31 3,843 121 25,110 2,422 2,441 86 30,059 Cost of Public In.stitutions and aid to Hospitals and (Chari- ties, for the year 1872, |284,781 68. Cost of Public Institutions and aid to Hospitals and Ch&ii- ties, for the year 1899, $1,()02,()02.92. Comparison of Asylums United States and Canada. Comparison of Asylum population from 1867 to 1899, in terms of 4 \'ears each. Per capita cost given for each term. At Confederation there were 921 patients in Asylums. If) FINANCIAL STATEMENT I Average daily population. 1,176 1,568 1,982 2.6i2 2,994 3,532 4,318 4,917 1871 inm 5,088 Per capita cost in 1867-1871 3140 70 Per capita cost in 1899 124 05 Per capita cost from 1872 to 1899 132 66 Comparison oj. Asylums United States and Ga7iada. 1868-1871 1872-1875 1876-1879 ! 1880-1883 1884-1887 1888-1891 1892-1895 1896-1899 Daily avera!;»t' populfitimi Per capita ;rease. cost. ai40 70 392 132 76 414 139 23 660 129 04 352 135 77 538 132 07 786 132 23 599 127 28 1,366 Annual per cap. in 10 New York State Asylums. 1898. $185 20 Annual per cap. in 6 Mas- sachusetts Asylums. 1898. $175 24 Annual per cap. in 5 Penn- sylvania Asylums. 1897. 64 Annual per cap. in 7 Ontario Asylums. 1899. $124 05 Revenue. 1868 and half of 1867 $ 6,723 65 1869 5,866 75 1870 8,764 32 1871 14,045 30 1899 74,364 54 Revenue per patient from 1867 to 1871 6 88 Revenue per patient from 1872 to 1899 15 84 Economical Management. From the above tables it will be seen that during the last four years — from 1867 to 1871 — the per capita cost of the inmates in our asylums was $140.70. The cost in 1899 was $1L>4.05, a decrease of $16.65 per patient. The per capita cost from 1 872 to 1899 — that is, the average of 27 years — was $132.66, so that our cost in 1899 is less than it was in the four years from 1867 to 1871, and is lower by about $8.61 than the average cost between 1871 and 1899. Now, if reduction in cost means anything, it means that reasonable economy has been practised. Taking the annual per capita cost in ten New York asylums, we find in 1898 the amount expended was $1"" "^0 per capita, as against HON. v.. W. ROSS. 17 $124 in the Province of Ontario. In six Maa.sachusetts asy- lums the average was $175.24 ; in five Pennsylvania asylums the average was $185.64. AsYi-UM Farms. In connection with all our large A.sylunis, the Government has established farms, on which two kinds of labor are employed — one the labor (jf experienced farmers or superin- tendents, and the other the labor of able-bodied patients who are tractable and to whom outdoor exercise is conge.iial and profitable. It has been found from «^xperi(aice that exercise in the open air is conducive to the recovery of the patients, and there is no ethical reason whythe State should not utilize such labor where it is beneficial to the patients, for the pur- pose of reducing the cost of maintenance. It is remarkable that in the management of the farms cimnected with our six largest Asylums, that this labor has been used at a profit and that the farms are in every instance more than self-sustaining. The table given below fully sustains this statement. The first column under the head of " Expenditure " includes all pur- chases on account of farming operations, wages of men and supplies of every kind. The second column, under the head of " Receipts," includes the produce from the farm and garden, either sold in the open market or used by the Asjdum at a schedule of prices approved by the Government. The profits in the third column should prove to the satisfaction of the most .sceptical that the farms in connection with the Asylums are well managed. Kxpenditiue. Receipts. Protit Toronto | 4,878 2'6 $ 5,054 99 $ 187 7f> London 10,100 00 17.78145 7,680 64 Kingston 4,904 08 7,433 93 2.529 85 Hamilton 7,363 79 15,695 27 8,332 48 Mimico 4,069 28 9,174 60 5,105 32 Brockville 3,876 99 4,422 45 545 4b Central Prison. It is difficult to show by any statement of fact that the management of any institution is carried on in the most economical manner. A person disposed to be critical might 18 FINANCIAL STATEMENT say that in the matter of salaries or supplies this or that item of expenditure was excessive, and although we Itelieve that no such evidence can he produced with regard to any of our public institutions, for all practical purposes we ihink that a comparison with institutions of a similar character elsewhere is conclusive. Without arguing, therefore, as to the details of the expenditure in connection with the Central Prison, the following statement is submitted for the infoi-mation of the House. Cost of maintenance as compared with similar institutions taken from latest available reports: — Institution. Central Prison, Toronto Penitentiary, Kingston " St Vincent de Paul. . " Dorchester " Manitoba " British Columbia State Prison, Massachusetts " New Jersey House of Correction, Cambridge, Mass Prison, Peterhead, Scotland " Perth, Scotland 12 Local Prisons, Scotland Average Per capita cost. population. Gross. Net. 388 S161 34 8114 95 616 318 21 203 59 400 21(! 54 214 52 217 227 42 209 28 80 493 40 459 63 104 421 31 416 73 845 173 26 1,0(K) 170 69 410 163 31 350 172 72 216 212 67 157 359 73 A ScHOoi., NOT A Prison. Then, if we take our own Reformatory for Boys au Pene- tanguishene, we find by comparison similar results. This instioution has been severely criticized by tha hon. member for South I^anark, (Mr. Matheson). I think he has found that the cost per capita now is more than it was twenty or thirty years ago. I think that cost is justifiable. When that institution was first opened it was not a reformatory, rather a gaol, perhaps, a house of correction, a place of confinement ; very little money was spent in the education of the boys, or instruc- tion in handicraft ; so far as their education merely was con- cerned very little money was expended upon them. We have turned it into an industrial school, practically ; we employ a HON. (}. W ROSS. 19 larger jstatl' than over before for the instruction of the boys, and every efTort is made to educate them, so that when their terms expire they will be honest and useful citizens. The cost last year for 133 boys was S2 18.44 per capita. Honorable gentlemen will see that this is nearly one hundred dollars more than the Central Prison, for the reason that it is not a prison and should not be a prison, but an industrial school. In the Massachusetts Reformatory for Boys the cost was S240.53 ; in Wisconsin, S302.3() ; in Minnesota, S355,23, and in Pennsyl- vania, #342.77. 1 need not ^ive all the figures; we have covered a large area. In this statement the attempt has been made to ascertain over a large area what the average cost of similar institutions is, and the figures I have given will enable honorable gentlemen to understand our position relatively to the position of similar institutions abioad. Then, the Mercer Reformatory, with a population of 106, cost S214.1G per capita; the Reformatory for Women in Massachusetts cost $215.43 per head, and the Industrial Home in Michigan $323.16 per head. The following statement shows the estimated expenditure for 1 900 under the usual headings ; — EsTiMATi. OF Expenditure, 1900. Civil Government $26:^,440 00 Legislation 133,200 00 Adniinifetration of .Iiistice 448,649 97 Education 750,048 05 Public Institutions Maintenance 829,092 00 Inuaigration 7, 125 00 Asriculture 205,725 00 Hospitals and Charities 185,207 85 Maintenance and Repairs of Government and Departmental Buildings 82,040 (X> Public Buildings : — (1) Repairs 1«5,984 GO (2) Capital Account 160,656 .35 Public Works : (1) Repairs 14,160 00 (2) Capital Account 32,822 71 Colonization and Mining Roads 123,250 00 Charges on Crown Lands. 140,075 00 Refund.s Account 103,256 68 Miscellaneous Expenditure 177,560 00 Unforeseeii and Unprovided 50,000 00 Amount of Estimates $3,723,292 61 20 FINANCIAL STATEMENT In (Jealini^ witli ♦hr t'stimated expcndituni tor tlio year ISJOO, honourable gentlemen will observe that there is a sH^'ht increjise in some items, as Ci)mparefl with the pr«?vious yeai Under the heading "Civil Uovernment" we expended lastyear$25*^,073.0)l This year the estimated expendit\ire is S2t);i,44(». This increase is made up of small items, such as salaries and other items wydeh we will have before us in detail when the Estimates are reached by the Hou^-e. [Jnder the head of " Legislation " it in also proposed to inerease the estimate as compared with last year. I have acted on this principle in regard to the Esti- mates of the current year, namely, to increase the estimates where the expenditure of the previous year showed that we had not taken enough money for ordinary purposes. As hon- ourable gentlemen who have examined the Public Aec(Mints will notice, whtsre theie was an overdraft — considerable in .some cases — in order to avoid that in future we have increased the estimate. That will account partly for the increased estimate for Legislation this year. Last year the estimate was S105,200; this year it is Sl'i3,200. Fiast year the sum was far from being sufficient. We have, therefore, increased it, in order that the estimate might approach more closely the requisite expenditui-e. 4 EbU. This antl other Lntimates gi.slation " ared with I tlie Esti- esti mates 1 that we As hou- ounts will ' in Honie I'eased tlie 1 estimate Sl()o,200; fom beinf^ ' that the penditure. diture on ! have in- i have on dd to the 1 crease of le the ex- r was in- of Separ- id doUarvS ve will be eh of the $101,232 he cost to tlie Province and to the municipalities), and l$4,007on Separate Schools ; that each Inspector of Public Schools had an average of 74 schools to inspect, wlu^reas each Inspector of Separate Schools had 37;i schools to inspect. The effect of that was that the supervision of Separate Schools was not as extensive and thorough as it should be, and we propose to increase the num- ber of Separate S'^hool Inspectoi's, and fortliat reason we have slightly increased the estimate. For many years the Public School Inspectors have paid semi-annual visits to each school, but during i\n^ period the Separate School Inspector has been unable to p»y more than one visit, and then his work was liurried and not thoroughly done. We hope to remsdy that by the increased expenditure which we arr making under the .subject of Education. Cost of Public In.stitctions. Tliere is a small increase also in the maintenance of our public institutions. The expenditure this year is greater than last year ; the number of inxnutes is constantly creasing. In Agriculture, also, there is a small increase, as compared with last year. We are taking an appropriation of SI, 500 in order to increase the expenditure now made under " Dair}'," or more particularly in butter and cheese making. Canadians have already got control of the British market, so far as chctvse is concerned, and with additional instruction it is believed we will get a strons: hold on the Briti.sh market in the matter of butter as Weil, and with some additional instruction we are advised that that will be more easily obtained. More Ahvlum AfcoMMOD.vnox Then, by the addition of new ho-ipitals to the statutory list, a larger vote is al.so required under that head. A vote is also required in connection with public buildings. It is proposed, for instance, to take the Cobourg building, 'hicli we have had for some time, and which we knew would bo required, although we put off tlie immediate renovation of it for public purposes as long as we could find acconnnodation at the Brockville Asylum and elsewliere. We have reached the maximum at Brock- 22 FINANCIAL STATEMENT ville and elsewhere, and it is proposed to take $15,000 this year to improve the building at Cobourg with a view to making room for senile patients who require very httlo attendance. This will relieve our larger asylums of the pressure upon them, and provide innnediate accommodation for those wlio are con- fined in our gaols. We liopc to meet that demand with an ex- penditure of $35,000 or $40,000 and make it as convenient and comfortable as anj' of our larger institutions. We also hope to transfer the lleformatory at Penetanguishene to Oxford within the next year or two. Thirty thousand dol- lars is being taken for that purpose— $10,000 for the site and $20,000 for the additional expenrliture on the building There is no employment that helps to make a man of a boy as well as agricultural employment. It gives him physical strength and it gives him that form of occupation which is most eon- genial to many boys, and is an excellent form of discipline. There is very little to attract the young boy at Penetanguish- ene. The land is not suited for agricultural development, and we believi- the institution can be made more useful and can also be more economically niauaged at Oxford than at Penetanir- uishene. Some of the institutions erected a few years ago were built upon a i-ather extensive and expensive scale. The one at Oxford, while being equal to the best, we trust will be so ai-ranged as to be conducted with greater economy than the one at Penetanguishene is capable of being conducted, and by the removal of the boys to the new site in the County of Oxford we will have addition accommodation at Penetanguishene for such patients as can safely be transferred U, that place— of a class very much the same as those we hope to transfer to the town of Cobourg. That will relieve the congested asylums and will enable us to care for a large number of patients at a re- duced cost. Increased Aid to Roads. Honourable uentlemen will also see that there i,s a consider- able increase in Colonization Roads. Following out the policy which we enunciated some time ago, it is our intention to push the roads in the northern settlements where we believe coloni- 1 i :S 1 1 ^ i^. ■fi Z8 1 in 1 te 1 tr 1 m HON. G. W. ROSS. 23 zation can be effectively carried out. There are two extremes in that northern district which will occupy our immediate at- tention. There is the western extreme, the Rainy River dis- trict, with over a million acres of fertile land. The settler must be got in. Our subsidy to the Ontario and Rainy River Railway will assist in this, but in an area extending 80 miles in length and :^0 miles in width a railway will not supply accom- modation sufficient to bring in the settler. It is our intention to make the railway a base line for the construction of coloniza- tion roads, and in that way give the settler easy access to all parts of that country. Honourable gentlemen have been favoured with a very excel- lent address by the honourable member from Ottawa with re- gard to the resources of the Temiscamingue district in which there is a solid block of 800,000 acres which is already being colonized and settled. In the winter it is almost impossible for the settler to get to the front without taking a circuit of 140 miles to go a distance of 80 miles in a straight line. In th© summer the Ottawa River furnishes admirable facilities, but it will not do to lock up the settler there, during the whole win- ter season from the 1st of November to the 1st of May. It will not do if we are going to encourage our young men to settle in that country, and so wo hope to open up a road from North Bay to Lake Temiscamingue in order that the settlers can come oat to the railway system and connect with the rest of the world. Amount Due on Ref^unds. There has Ijeeii also a considerable increase in the payments on account of Refunds. One or two of these items I shall refer to briefly. For instance, there is, first, an increase for a refund on certain mortgages sold by the Gove»"nir Mit some years ago. The amount in the Estimates is $61,297.62. That came about in this way : When we sold the asylum land, I think in 1889 or 1890, we '' course received a certain percentage of the purchase money down~I think it was about one-fourth Mortgages were taken for the balance. With the exception of of one or two of these mortgages, no payments have been made subsequent to the cash payments. We held these mort- 24 FINANCIAL STATEMENT gages, and instead of selling annuities smd meeting the expen- ditures for railway purposes, etc., it was thought advisable to sell these mortgages, and of course they could not be sold without being guaranteed. Otherwise they would have been sold at a sacrifice. They were therefore sold. Some of them were taken by Trust companies ; some were sold to the University Trustees. Those mortgages being guaranteed by the Govern- ment, have to be discharged. Sixty-one thousand dollars of a refund to these corporations for the iraount of money advanced will relieve us of that obligation. Mr. Matheson— Do I understand that this money is paid for the equity of redemption or simply (jn account of guaran- teeing the mortgages ? Hon. Mr. lioss— We received in all, first in payment of cash and afterward by the re-sale of these lands, nearly $40,000 on account of these mortgages. Honourable gentlemen know that a piece of real estate is often sold at a very high figure with a payment down and a mortgage for the balance. If the estate comes back the mortgage cannot be realized upon ; there is nobody to hold. That was our position. These lands were sold as high as $81 a foot frontage when the boom vva3 on. We received in cash and on the sale of lands subsequently about $40,000, so that if we had not the money which we received for these mortgages we hud the lands. Minor ItExMs. I need not tntuble the House with extended explanations with reirard to minor items, i or instance there is the sum of $40,000 for the exploration of New Ontario, i. c, for the dis- trict lying north of the Canada Pacific Railway. It is inten- ded to send out a number of exploring parties, accompanied by a geologist and one or more other perscms familiar with timber and agriculture, so as to cover, as near as may be, the whole country between the Quebec l)oundary and the district east of the Lake of the Woods. We think the time has come when we should ascertain with somc^ accuracy the resources of that La-eat countrv. IT it is fit for settlement, then it must be settled. If its wealth consists of pulp-wood or pine this should HON. G. W. ROSS. 25 .,.> known. If it has coal, as is reported, or if its mineral wealth is equal to the wealth of the other portions of New Ontario, facilities for developing that wealth should be afford- ed We hope at the next Session of Parliament to lay before the House a full report of the resources of that country as the result of this expenditure. Patriotto FtJKi^. There is an item in the Estimates of $10,000 towards the Patriotic Fund now being established on behalf of the families of our soldiers who have gone to South Africa in defence of the interests of the Empire. There is also an item of $4,000 to pay the salaries of men in the public service who enlisted in one or other of the Contingents already gone forth. The Oovernment thought where any person in the Service placed himself at the disposal of the Empire for such a noble purpose the least we could do was to preserve for him his situation during his absence and pay to his family or to those in whom he was interested, whatever salary would have come to him had he remained at home. The sum of $4,000 represents this con- tribution. Expenditures Within Income. Further observation with regard to the increase in the Estimates need not be made. The increase of this year's Estimates over the Estimates of 1899 is $:I13,724.88, while the increase in the Estimates over the expenditures of 1899 is $249,448.11. As we discuss these matters in Committee of the Whole House I hope to be able to show that these increases in all cases are warranted— in fact in almost every case have been made largely for the purpose of development. Of course statutory increases will follow, and next year we liope to vote something for the improvement of the drainage ^f the country and for other purposes. As we stand at this moment we are confident that we shall be able to meet the expenditure of the current year out of our ordinary revenue, and that we shall have in addition a very handsome surplus at the end of the year. It is altogether probable that our ■ 26 FINANCIAL STATEMP:NT surplus at the end of the year will be at least $200,000. Last year it was over $400,000. So that we are not encroaching upon our estimated income by the expenditures which we propose. The Province's Assets. A word or two with regard to the assets of the Province. Now I am entering perhaps upon disputed ground. Where do we really stand as a Province ? What are our assets and liabilities ? Hon. gentlemen will remember that I told them that a Royal Commission was appointed for the purpose of ascertaining the financial position of the Province. A copy of the Report of the Commission has been placed in the hands of hon. Members, and have no doubt it has been carefully perused. It shows taking the whole period since Confederation down to the present time, that we have kept within the ordinary receipts of the Province. The ordinary r-eeipts since Confederation down to October 31st last, the time fixed in the Commission as the terminal period for the examination of the accounts were $103,815,404.42 and the expenditures $103,218,- 525,4(), leaving a balance of $596,878.96. So much for thirty years of good financial management. Assets and Li abilities. The next point in the Report of the Commissioners to which I would call attention is the statement contained on pages 20 and 21, setting forth the assets and liabilities of the Province. The a,ssetsof the Province, briefly summarized, consisted of the following items on the 31st October, 1899 :— 1 Total of actual cash on liand . 2 .Funds held by the Dominion in behalf of Ontario upon which interest at a rate of rive per cent, per annum has been settled as payable ^ to the Province half yearly : U. 0. Grammar School Fund. I 312,709 04 U. C. Building Fund l ,472,391 41 Land Improvement Fund 124,686 18 Fund created under Act of 1884 2,848,280 52 $597,526 :^» I 4,758,135 1& I 4. Municipal debenture 1. HON. G. W. ROSS. 27 Common School Fund held by the Dominion on behalf of the Provinces of Ontario and Quebec, upon which interest at the rate of live per cent, per annum ia payable, divisi- ble as between the Provinces in ratio of the last decennial census, 2,521,371.10; upon basis of 1891 census, Ontario's share '»«ing $1,479,660 10 $6,835,317 63 Direct investments : f Drainage debentures $118,019 30 I Tile Debenture coupons 120,732 17 I Municipal drainage assess- I ments .37,196 47 ! SaultSte. Marie debentures. 29,152 65 305,100 59 Total Assets ...".... $7,140,418 22 The liabilities of the Province, on the 31st October, 1899 are as followB : Balance of account current with t\w Dominion from Con- federation to date, including Common School Fund and other transfers ; capitalization of the bounty of the Crown under tribal treaties assumed by the Do- minion, the capital having been apjjortioned to the Provinces under various awards, with interest upon said account current, and including interest as between Ontario and Quebec not finally adjusted $2,000,000 00 Common School Fund collections by On- tario from 1st January, 1898, payable to the Dominion in trust for both Provinces $12,576 12 Less Ontario's share upon basis of last census 7,308 24 5,267 88 Present value upon V)asi8 of '3k per cent, per annum of : Annuity re-i)ayments $1,937,231 1)0 Railway certificates 1,180,483 00 3,117.714 90 Liability to other Crown Trusts in connection with certani land sales, the mortgages for whicli were taken over by these trusts upon the guarantee of the Consolidated Revenue Fund , 59 562 15 $5,182,544 93 Since the balance sheet of the Province wa« made up by the Royal Commission on the 31st of October, 1899, the assets. 28 FINANX'IAL STATEMENT have been materially increased by payments received from the Crown Lands and other sources. The actual casii on hand on the 31st of October was found by the Royal Commission to be $597,526.38. On the 3lst December 1H99, tiie actual cash on liand in our Banks was S83G,195.39. This would make our total asset with a few other minor items $7,3G8,917.20. (See appendix). Bringint^ the liabilities also down to the same date we tind that they amounted to $5,117 985.16, leaving a surplus of assets, a^er deducting all liabilitieK of $2,250,932.04. One of the objects in appointing the Royal Conmiission was to ascertain our financial standing, and to know whether our liabilities were greater than the assets. I wanted to settle this contentious question. I must confess I was somewhat weary myself in discussing the matter of the sur- plus, and I perhaps wearied the honourable gentlemen opposite* and perhaps I may say the honourable gentlemen opposite wearied me, (Laughter and applause). It was a very monot- onous discussion many a time, and my friends perhaps on both sides of the House wanted to know really where we stood. A Million for Good Roads. Secondly, we wanted to know whether it would appear from an examination of the receipts, extending over 30 years, that we could embark upon large expenditure for the purpose of development. I am glad to be assured by the Counnission that our expenditures have kept within our ordinary revenue, and from the increased revenue that is now in sight and that we expect to realize from the increased taxation last yeai' — unless we increase the expenditure very, very much — we will have a l)Uoyant revenue, and we can undertake new schemes for the development of the country. I shall be delighted if we can expend in the next ten years a million for good roads — that is, a hundred thousand dollars a year. I think the reve- ntto would also stand that. I think the revenui' would stand a reasonable appropriation foi cold storage and drainage works, which aro beyond the reasonable capacity and strength of our municipalities. I think the revenue will stand some- HON a. W. ROSS. 2y some- tiling' there. Take a river which runs shiggishly through a flat area, to the detriment of the health of the community and to the wasting of valuable land. To dredge and improve th<*t river is beyond the capacity of the municipality. If our engineer reports that the deepening of the channel or the- straightening of the channel is a work that will come within the provisions of the Bill whic^ the honourable gentleinen will see later, then that is a work in which we hope to assist, I think these are Provincial works which add immensely to the wealth of the country, and that is one of the reasons why the Royal Commission was appointed. ChxVRacteu of our Assets. I do not [)ro])Ose to discuss in detail the character of our assets. The point at issue between the Government and the Opposition for many years has been, were the assets available for th(^ iminediate nec*\ssities of the Treasury. In regard to the cash in the bank, there never has been any real dispute although honorable gentlemen even disputed our bank account. I presume, however, that in the present instance, they vvil' admit the statement made by the Treasury Department that our cash balance amounts to nearly $900,000. With regard to the trust funds, the Government always held that inasnmch as they yielded interest at the rate of five per cent, they were even better than a cash balance in the bank, as we only realize on our bank account at the rate of three per cent. The battle, however, raged most vehemently around the item of $2,848,000 placed to rhe credit of the Province by the Dojninion Act of 1884. This was held not to be a realizable fund but rather a part of the Dominion subsidy of the same class as the subsidy granted the Provinces at the time of Confedera- tion, and inasmuch as it was not convertible into cash, it therefoi-e could not be considered as an asset, notwith- standing that the Dominion Government paid interest on it at the rate of five per cent, per annum. On the other hand, the Government held that under certain Acts of the Dominion, this sum might be properly withdrawn and used for the pay- ment of outstanding liabilities, or for any purpose of f^ fair I 30 nXAKCIAL STATEMFN'T -ed by Parliament. Referi character w ?h would he app to this sum, the CommiHsioners (on page 22) remark as fol- lows : — "The fourth fund, |!2,848,289.52, also held exclusively for the benefit of Ontario, was created under a Dominion statute in 1884. It is practically a refund to Ontario of various amounts retained as interest by the Dominion upon an assumed excess debt of the late Province of Canada, with interest upon said retentions to 1884, capitalized. It might occur to those unacijuainted with the juanner of fixing the present value of semi-annual payments of interest where the principal sum does not become payable at a fixed date, or never becomes payable, that such an asset is not as available for the purposes of the Pro\ ince as if the principal sum could be obtained and the interest payments be term- inated. If any hold such a view we venture to say that it is quite unsound with reference to the obligations of the Domin- ion Government to the Province of Ontario. It is quite clear that the semi-annual payments can be hypothecated and the present money value be thus obtained, and we have shewn that if the Dominion Government earn it force the Province to take the principal sum, the asset is enormously increased in vahie because of the high rate of interest fixed by statute. But in order to set at rest such a view the Commissioners re- quested the Provincial Treasurer to communicate with the Minister of Finance in order to ascertain whether the Domin- ion would pay the sum of $2,848,289.52, being the fund created under the Act of 1884, provided the Province requested it to do so. We subjoin the correspondence, which leaves no doubt that if the Province should desire to forego the privilege of receiving five per cent, per annum in interest on this amount .the Dominion will be quite willing to repay the principal." " Toronto, Dec. 29th, 1899. "My Dear Sir, — The Government of Ontario have appointed a Royal Commission for the purpose of enquiring into and re- porting on the financial affairs of the Province. For the pur- HON. 0. W. ROSS. 81 pose of assiHting the Commission in tiie prosecution of theik enquiry, I am desirous of ascertaining liow your Department rtigard the sum of money ($2,848,000) which has been placed to the credit of the Province by Chap. 4 of the statutes of 1884. " Although We have not called on the Dominion for payment of this: money, we have assumed in our accounts that it belongs to the Province, and that if we had desired to use it for Pro- vincial purposes we would have been free to do so. "Kindly let me know the view which your Department takes of this question, " Yours truly, "G.W.ROSS," " Hon. W. S. Fielding, M.P., " Minister of Finance, " Ottawa." " OiTAWA, January .2th, 1900. " My Dear Mr. Ross, — I have the honor to acknowledge the receipt of your letter of the 29th ultimo on the subject of certain moneys placed to the credit of your Province in the accounts with the Dominion. '* The advantages to the Province in permitting these moneys to remain to the credit of the Province in the Dominion, where they yield to the Province five per cent, interest, are so obvious that I do not suppose you are contemplating their withdrawal. As a pure matter of finance between the Dominion and the Province, it would of course be profitable to the Dominion to pay you the money, as we could easily raise it at much lower rates. " I do not think your Government have any unconditionjal right to demand this money from the Dominion. There are certaii "L'^Hations provided by the statutes; but no doubt if you desiied to obtain the money, you could easily comply with these conditions. " In the earlier history of Confederation it appears to have been contemplated that the moneys placed to the credit of the 82 FINANriAL STATEMENT 1 'ailed tin- Debt Accoiint should remain Provinces in what in that account, K.... the annual interest be paid lo supplement the allowances for the support of the Pn>vincial Coverr. .lents. I find, however, that in 1874 there was a chan^^e of policy in this respect. Section 2 of Chap. 17 of the Statutes of that year provides as follows : " ' The Governor-in-Council may in his discretion idvance from time to time to any Province of Canada such sums as may be reijuired for local improvements in the Province, and not exceeding in the whole the amount by which the debt of the Province for which Canada is responsible then falls short of the tlebt with which the Province was allowed to enter the Union, such advances to be deemed additions to the d.'bt of the Province, with permission to the Province to repay them to Canada, on such notice, in such sums and on such other con- ditions as the Dominion Covernment and that of th<- Province may agree upon, any auiount so paid being deducted from the debt of the Province in calculating the subsidy payable to it " Under this statute it appears to have been intended that the moneys at the credit of the Provinces could be withdrawn for the purpose of assisting in the construction •)f Provincial public works. Considerable sums were so drawn by the Pro- vinces of Nova Scotia, New Brunswick, British Coknnbia and Manitoba. " By chap. 4 partment in 1884. anent intended that they might he withdrawn by a Provincial Government, with the previous sanction of the Legislature, for local improvements." Mo doubt this House would grunt the necessary legislation, if good reasons were assigned, and the Dominion (Jovernment having already allowed the Provinces of Nova Scotia, New Brunswick, British Columbia and Manitoba to withdraw part of tlie moneys placed at their credit, could not refuse Ontario. If we wanted to take up all our annuities and pay them off, the Legislature could apply to the Dominion (Jovernment, through the Minister of Finance, and get this money for that purpose. Vindicated Mr. Matheson here insisted that the opinion of the Minister of Justice would first have to be'seeured. A former Minister had given as his opinion that this could not be done. Mr. Ross,— I would like to get documentary proof of this statement, as I have no doubt the opinion of the Minister of Justice was obtained by Mr. Fielding before the question was answered. Certainly, had I such a ([uestionto answer myself, T would obtain the opinion of the Attorney- General's Depart- ment. It ought U) be gratifying to Hon. Gentlemen opposite, even although it has destroyed a good deal of their campaign literature, to find all doubts upon the validity of the assets of the Province dispelled. Certainly so far as the Government is concerned I am glad, not from a party standpoint merely, that the validity of our assets has l)een maintained by the Commission, but I am glad to know we have seven million dollars in substantial assets in this good old Province of Ontario. The Province ought to congratulate itself, and I am sure every business man will congratulate the country on its financial position. HON. G. 'V. ROSS. 35 Now where iIooh this leave us ? Preeisoly where we always sai'l we stood, viz., with assets about $2,000,000 in excess of our liabilities. This was the statement 1 made at Whitby three months before the Commission made its Report and a similar statement has been made by iny colleagues from time to time in the House and in the country. Even the least avaricious man would not despise a credit balance of S2,2oO,COO. But I might go further and might hold that our surplus is really $5,000,000. Our railway annuities, although a debt in a certain sense of the term, do not really become a debt until we are called upon to pay them. It' we had issued debentures payable in twenty years, the interest o ' being payable in the meantime, there could be no dispute as to the nature of such an obligation. It would be as distinctly a debt as a mortgage upon a farm. But we have not issued debentui^s; we have simply undertaken to pay certain demands f /i ailway purposes out of revenue from year to year, as such demands are made, precisely the snme way as we pay the grants for education or the salaries of the public service. However, 1 am willing to give the Opposition the benefit of their conten- tion that our railway obligations are a deb^., and I hope they will be e(iually fair with me and give me the benefit of my contention that after all these obligations are discharged, there is still a margin of §2,250,000. Mr. Matheson. — I w^ish to draw attention to the fact that the Commissioners did not subtract the liabilities from the assets. They give a statement of the assets, but they do not subtract the liabilities from them. The Pkemieu. — They make the statement that we have liabilities of tive millions and assets of seven millions ; cannot we subtract, can't the honorable gentl&nuui subtract ? (LaugU- ter and Ministerial applause ) I have never had a boy pass through my hands at school who could not subtract, and I will teach the honorable gentleman to subtract. (Renewed laughter.) Mr. Mathe.sox. — You cannot use trust school funds to pay your railway liabilities, however. The PuEMiEK.— We do not do that. Something the honor- able gentleman can do is multiply. My predecessor under- 36 FTNANCIAI. STATEMENT Stood his weakness. He (the lionorable gentleman opposite) can-T should not say exaggerate-but he can enlarge state- ments with wonderful facility, and after he has them double .their size, then he can multiply them after that. (Mimstenal applause.) Of this surplus of over two millions, $836,1 J5.d J is in cash. I think I have clearly shown, with the assistance of this Report, where we stand financially, and while assuring the House and assuring the country that our expenditures will • be moderate, and, as is said in the Speech from the Throne.that the moneys voted will be applied with due regard to economy as well as efficiency, I am glad to know that we have under- taken some expenditures which we were forbiilden to take with a smaller revenue some years ago. (Ministerial applause.) Bookkeeping Commended. Besides ascertaining our true financial position, the Commission was instructed to examine the books of the Treasury Department and report whether the methods of bookkeeping set forth the transactions clearly and with reasonable detail. On that point the Commissioners say :— " This iNt,)UiKY has been directly reported upon in con- nection WITH SECTION 1 OF THE ORDER-IN-CoUNCIL, WHERE WE HAVE SHOWN THAT THE METHODS OF BOOKKEEPING ARE EXCELLENT, AND EXHIBIT IN AS FULL DETAIL AS IX AN ORDIN- ARY FINANCIAL INSTITUTION ALL THE FINANCIAL TRANSACTIONS OF THE Province." We are under the imputation that we were holding money back. Some newspapers said :— " If the Government were dis- missed and the Opposition could go in and examine the books of the Treasury they wMdd find something that would astonish t]ie whole country." No Startling DISCOVERIES. The whole country would stand aghast if they could only get at something, some mysterious Ethiopian who had hidden himself away .somewhere, and was to be brought out. (Ministerial aoplausr. ) Well, the Commission has gone through all the buoks, and, as I said thf' othei- day. then- accountant HON. r,. W. ROSS. 37 was a Conservative. They have examined our Banii clear- ances, our debentures, our trust funds, have corresponded with the Dominion Government, and have put upvon record their opinion, and that opinion, I am glad to say, vindicates every contention we have made in the last thirty years. In regard to bookkeeping, they almost go out of their way to compliment the Provincial Aud tor. They reassure us as to the value of our assets, our bank balances, as to the details of public tran- sactions. In fact, in every respect I think this report will be accepted by the country as conclusivf that the Treasury Department has been conducted with reasonable care and that nothing has been found to discredit the Government. We have done, then, with the transactions of the Govern- ment for the last thirty years, and I can assure honorable gentlemen that as far as possible our record for the next twenty or thirty years, more or less, will be on precisely the same lines. (Ministerial cheers.) We cannot improve upon it. The work has been most excellent. Cause for Confidence. We are starting the closing year of the century with a record that makes us feel that we are entitled to more, indeed, of the confidence of the country than perhaps we lia by some honorable gentlemen in this House and out of it. I assure honorable gentlemen that I do not believe the supplementary estimates will be very large, although I am not able to say now positively whether they will be or not. The (Expectation is they will not be very larg(>, and I hope that when the finan- cial policy of the Province is discussed, and when our Public Accounts are examin("«jo ^ Woods and Forests — $185,000 00 3,000 00 10,000 00 12 i2 16 04 PUBUC INSTITUTIONS ■• ^540,000 00 To,o.toL„,.ticA.,.-- ■;;•;;;.::;■..:: 1^,000^ 12,000 00 London Kingston Hamilton Mimico ^^ " Brockville ^ ,i Boys ... Central Trison. Kducation Department Casual Revenue Succession DuUeB-.^.-^-^^g^ rerrlJtwers' Licenses.- Law Stamps Algoma Taxes Fiebenes ... Assessments', Drainage Works.... Insurance CompanieB Removal of Patients 4,000 00 3,800 00 3,500 00 1,700 00 700 00 2aooojo ^^^^^ ^ 50,000 00 ■ ■ 150,000 00 175,000 00 220,000 00 S75,000 00 60,000 00 4,5C0 00 35,000 00 5,000 00 ■ ' 3.000 00 4.000 00 Total Estimated Rec^^^^^^^^^ Cash Balances 31st uec «4,183,487 28 83H,195 30 $5,019,082 *>7 Total . 4 CONTENTS PAGE. Act of 1884 ($2,848,000 fund -iO Assets, 1 2 months 39 Assets, 10 months 26 Asylum admissions 15 Asylum farms 17 Companies incfirporated ^ Central Prison 17 Colonization Roads *" Decrease of drunkenness ^ Expenditure, 1899 12 do estimated for 1900 1^ Exports of farm produce * Estimated Receipts, 1900 *0 Education 20 Good Roads 28 Liabilities, 10 months 26 12 months 39 Patriotic Fund 25 Prosperity of Canada * Public Institutions 1'^' 21 Pauper population 1* Revenue Act, receipts . H Revenue, 1899 ^ Reformatory for Boys 1^ Refunds 23 Railway Certiticates '^^ Report of Royal Commission on Finances 26 Succession Duties ^" 42]