c 
 
 A 
 
 
 OP' THK 
 
 HON. ADAM CROOKS, 
 
 TKEASUHKK OF TIIK I'KOVIXCE OF OXTARIO, 
 
 DKLIVKRKD ON THE 21st FEBRUARY, IST-S, 
 
 IN THE 
 
 ^egislatibe l^sstmHo of Ontario, 
 
 ON MOVING THE HOUSE INTO COMiMITTEE OF SUPPLY. 
 
 RFl'ORTKD BY H. KINLOCH. 
 
 Coronto : 
 
 PRINTED BY HUNTER, R(JSE & CO., 80 AND 88 KING STREET. 
 
 VI 1873. ' 11/ 
 
SP'EIGCH 
 
 OF THE 
 
 1 \ ."^ -. '■ 
 
 HON. ADAM CROOKS, 
 
 TREASURER OP THE PROVINCE OF ONTARIO, 
 
 DELIVERED ON THE 21st FEBRUARY, 1873, 
 
 IN THE 
 
 ^ '„ • ■ ■ < ■ ■ - ^ ^_ ■ , ■ ■ 
 
 ON MOVING THE HOUSE INTO COMMITTEE OF SUPPLY. 
 
 REPORTED BY H. KINLOCH. 
 
 Corjonto : 
 
 PRINTED BY HUNTER, ROSE & CO., 86 AND 88 KING STREET. 
 
 1873. 
 
FINANCIAL STATEMENT 
 
 OF THE 
 
 HON. ADAM CROOKS. 
 
 Legislative Assembly, 
 
 Toronto, Friday, 21si Feby., 1873. 
 
 Hon. Mr. Crooks said : — Mr. Speaker, In moving that you do leave 
 the Chair, in order that this House may resolve itself into a Committee 
 of the Whole, for consideration of a supply to be granted to Her Majesty, 
 it becomes my duty to make the customary statement in reference to 
 the financial affairs of the Province. In proceeding to make that state- 
 ment, I may first direct the attention of hon. members to the circum- 
 stance that they have before them in full detail all the accounts relating 
 to the occurrences of the past year. For the year ending 31st Decem- 
 ber, 1872, hon. members of this House have for fully a fortnight been 
 in possession of all the public accounts, involving the minutest details 
 and every item of public expenditure under its proper head. I may also 
 remind hon. members, that this is the second occasion on which, during 
 the sitting of the Legislature, hon. members have been placed in this 
 position of having before them, v/hile the House is in session, and 
 while called upon to vote the supplies for the coming yeai — the second 
 occasion on which they have been furnished with the public accounts in 
 this full and complete shape. My immediate predecessor in the oflSce 
 of treasurer, was able during the session of 1871-2, to place the public 
 accounts in this same full and complete shape before the House then in 
 session, in the month of January, 1872 ; and in the first week of Febru- 
 ary, 1873, I found myself able to discharge the same duty. On pre- 
 vious occasions the House was furnished, not with the public accounts as 
 they were subsequently printed, because formerly the public accounts in 
 detail were not printed and published until during the recess which in- 
 tervened between the then session and the foiiowing session, and all that 
 was submitted to the House during its sitting was an abstract rather 
 
FINANCIAL STATEMENT. 
 
 than a full statement of the accounts of the preceding year. This is 
 the fonn in which for the year ending 31st December, 1870, the public 
 accounts were submitted for the consideration of the Legislature. It 
 is a small pamphlet consisting of twenty-four pages : while the public ac- 
 counts now submitted consist of upwavds of one hundred and fifty pages ; 
 and the only details which were contained in that statement of the pub- 
 lic accounts were in reference to the contingencies of the several De- 
 partments of the Government. In other respects all details were omi' ^^d 
 from this statement, which was made up in the following form : — First, 
 the receipts and expenditure for the ten months ending 31st of October, 
 and then a similar statement for the two remaining months ending 31st 
 of December. Now, I allude to these circumstances in order to show 
 hon. members that during former sessions the Legislature has not had 
 the opportunity of considering the public accounts of the previous year, 
 before being called upon to vote the supplies for the coming year, and 
 was not in possession of the details in the manner I have mentioned. 
 I refer to this for the purpose of enabling hon. members to justify me 
 when charged with any apparent delay in bringing down the accounts 
 for last year. Hon. members can conceive the amount of labour 
 which is involved ^.fter the close of the year on the 31st of Decem- 
 ber, before all the public accounts can be properly balanced and 
 drawn up in detail, sent to the printer, the printing revised, and the 
 accounts placed before hon. members in a correct shape. The delay of 
 five weeks after the 31st of December in preparing the public accounts 
 to submit to this House, I think can only be spoken of as a short delay ; 
 and that the delay is more than reasonable cannot be imputed to me or 
 to my Department. Again, as to the assembling of the Committee to 
 whom the public accounts are referred, I may say that that Committee 
 was convened as soon as suited tb^ convenience of hon. members com- 
 posing it, and they have been engaged now for seven or eight days in a 
 careful examination of these accounts. They will have the fullest op- 
 portunity during this session of examining in the most exact manner, 
 and of submitting to the closest scmtiny, every item of expenditure. 
 
 With these preliminary remarks, I may proceed to discuss more im- 
 mediately the financial position of the Province of Ontario, as it was 
 on the 31st December, 1872. In calling the attention of hon.' members 
 to this, it will be desirable that I should remind the House of the cor- 
 rect position in which the Province of Ontario financially stands, and 
 
^* PTNANCrAL STATEMENT. l' B 
 
 before stating that position in as concise a forra as possible, I may 
 here mention that this information has been mainly drawn from the 
 statements of one of my predecessors — the Hon. Member for South 
 Brant — which will always form most valuable records in the depart- 
 ment over which I now preside. In the financial statements to which 
 I refer, the hon. member, while Treasurer of the Province, has placed 
 on record most valuable information not so much in regard to our ordi- 
 nary receipts and expenditure, as in regard to that with respect to 
 which it is difficult to find in any intelligible form correct information. 
 I mean the true position of the Province in respect to its relations to 
 the former Province of Canada, and the Dominion Government. I have 
 examined the statements which have been made during the years 1868, 
 1869, 1870 and 1871 by the hon. member for South Brant. I have 
 also had the benefit of the statement made by my immediate predeces- 
 sor, the Hon. Mr. Mackenzie, in February of last year ; and from these 
 statements I have obtained information of a valuable kind which I 
 propose to communicate to the House, and which will enable hon. mem- 
 bers to understand the correct position of the Province. I may also 
 mention in connection with these sources of information that there 
 was a further document, which emanated from the hon. member 
 for South Brant, of an exhaustive and valuable character, namely, his 
 final argument before the arbitrators for determining the relative 
 positions of Ontario and Quebec in connection with their share of 
 the excess of debt, and in regard to certain trust funds and assets of 
 the former Province of Canada. That argument is the main source 
 from which we can derive any correct notion of our true position in con- 
 nection with that question, and I may say that the hon. member for 
 South Brant deserves from this Province the largest amount of 
 praise to be paid to him for the exceedingly exhaustive manner in which 
 he took up, on behalf of this Province of Ontario, the examination of the 
 important questions which came before the arbitrators ; and if one were 
 to compare the terms of the award pronounced with the arguments of 
 the hon. member for South Brant, he must come to the conclusion that, 
 in the main, the arguments of my hon. friend prevailed even to the very 
 figures on which the hon. member argued with regard to this Province. 
 (Applause.) In calling the attention of this House to the statement which 
 I propose to make, I may assume some important particulars in which 
 the member for South Brant claimed certain allowance3 for this Pro- 
 
9f- FINANCIAL STATEMENT. 
 
 vince, and which allowances were acquiesced in by the arbitrators. And 
 further it appears to rae that considering all the circumstances bearing 
 on the position which the member for South Brant took in connection 
 with that important question, involving as it did very large items of 
 money, it would be difficult to say that his position was not a sound one 
 in principle ; and whatever may become of this question, and whatever 
 attention may be required to be paid to it, I know no one who is in a 
 position to lend more valuable aid to the cause of this Province than 
 that lion, member. (Hear, hear.) 
 
 In now submitting my statement to the House, I propose asking the 
 House to go through the same or a similar course of instruction,which I 
 myself was obliged to go through when first I took charge of the Depart- 
 ment. As I have had that charge for only a few months in connection 
 with other labours, I have not yet been able to master as fully as I would 
 have desired all the questions of importance which require to be attended 
 to. The first point I wished to arrive at and be instructed upon was, 
 how does the Province of Ontario in truth stand ? It is claimed for it 
 that it has, and it undoubtedly has, a large amount in a state of invest- 
 ment, a large amount saved out of revenue, and a large amount invested 
 in public undertakings ; but the point of vital interest is, when there is 
 a settlement of the debt with which this Province is chargeable in con- 
 nection w til the "Id Province, what is our correct position 1 Under the 
 British I\ '">. Americi Act of 1867, there is a stipulated amount of the 
 public debt o^ (J mr/la to be assumed by the Government of the Domi- 
 nion. That amount is $62,500,000, and for the amount of debt 
 above that sixty-two-and-a-haif millions, the Provinces of Ontario 
 and Quebec are jointly liable in such proportions as were to be 
 subsequently determined by arbitration. Upon a rough estimate 
 it has been assumed, and it was assumed by the arbitrators, that 
 the sum of $10,500,000 would be that excess of debt — in other words, 
 that the Provinces of Ontario and Quebec were bound, under the British 
 North America Act, to assume between them that amount of debt, the in- 
 terest on which r/as to stand against the Provinces — in other words, the 
 interest on the excess of debt due by Ontario and Quebec was to be a 
 charge against the amount payable by the Dominion to each of these 
 Provinces, so that while we in theory are to receive something like 
 $1,200,000 from the Dominion, there stands against us, as a first charge 
 upon that sum, the amount of interest to be payable by the Province of 
 
FVfAJSQl^ STATEMENT. f 
 
 Ontario, on its share of the excess of debt. Various sums have been 
 assumed in regard to the excess of debt, but periiaps it may be desirable 
 to assume, at least for the present, that the amount in reference to which 
 the accounts of the Dominion with this Province are now being carried 
 on is correct. The assumption, so far as the Dominion is concerned, is 
 that the excess is $10,500,000, and Ontario is assumed to be charged 
 with five-ninths of that and Quebec with four-ninths, so that there would 
 be a sum of $5,833,333 as the debt which upon this basis stands against 
 this Province ; and although the principal of this debt may not be pay- 
 able except at our option, and although the principal represents 
 only the basis of an annual charge against us, it is still a perpetual charge, 
 while on the other hand the charge against Quebec is based 
 upon a sum of upwards of four millions and-a-half. It will, however, be 
 satisfactory to hon. members to understand, that this ten millions is only 
 an assumed amount. In previous discussions that have taken place in 
 this Legislature, the former leader of the Government, the Hon. S'and- 
 field Macdonald, took occasion emphatically to say that this was merely 
 an assumed amount, and the then Hon. Treasurer coincided in that view. 
 The hon. member for South Brant, in his financial statement of 
 December, 1868, mentioned that this excess of debt was subject 
 to a large reduction, which, he claimed, amounted to upwards of four 
 millions of dollars, and he claimed these deductions on what appear to 
 me to be accurate data. Hon. members will find the figures in the state- 
 ment of the hon. member of December, 1868, where he shows conclu- 
 sively that as between the Dominion of Canada and the public debt 
 of the former Province of Canada, that public debt should be de- 
 creased by three large items — one a claim against the Great Western 
 Railway Company of Canada ; another against the Grand Trunk Com- 
 pany, (not at all in connection with that large amount, nearly twenty 
 ' •"'illions, which was represented by the transactions of previous years, 
 but in respect of equipment mortgages,) and also, a claim against the 
 Northern Railway. The then Hon. Treasurer argued fairly that these 
 three large items were assets of the former Province of Canada and should 
 be collected, and the amounts when paid placed to the credit, and in reduc- 
 tion of the debt, of ohe former Province of Canada. But I go further and 
 say, that we may claim in reduction of that debt every amount which 
 can be fairly recovered from the Grand Trunk and Northern Railway 
 Companies, for which those companies are debtors to the former Pro- 
 
8 FINANCIAL STATEMENT. 
 
 vince of Canada. In regard to the Northern Railway, although its debt 
 has been postponed, and money raised with a view to place the under- 
 taking in an efficient position, yet there is value enough in that road to 
 enable me to consider that any a,dvance made in former years to the 
 Northern Railway need not be entirely lost. In other words, I think 
 that in the Northern Railway Company of Canada, there is something 
 in the way of a valuable asset for the reduction of the debt of the 
 former Province of Canada. So in regard to the Grand Trunk Company, 
 in respect to the large advance of fifteen millions and upwards made to 
 that company ; although the interest upon that is postponed, it will be 
 come a first lien upon the undertaking, and in connection with any new 
 arrangement to place the company in a more satisfactory position, we at 
 all events, as representing that large amount, which represents so much 
 of the public debt of the old Province, are entitled to be considered, and 
 whatever is to be finally done in regard to this large Grand Trunk debt, 
 tkis Province and the Province of Quebec are interested in it to a very 
 large extent indeed. Hon. members will be pleased further to 
 learn, that as against this assumed amount which we may be 
 in debt to the Dominion, we have these special funds, of the value 
 of which there can be no question, to fall back upon. We have the Upper 
 Canada Grammar School Fund, amounting to $312,769.04, which is a 
 living fund which yields us annually five per cent, interest ; secondly, 
 the Upper Canada Building Fund, 11,472,391.41, nearly a million and- 
 a-half, also- a living fund, which gives us interest at six per cent. We 
 have also our five-ninths share of the Common School Fund, Quebec 
 being entitled to the other four-ninths, our share amounting to $914,246. 
 This too is a living fund, so that we have nearly three millions of specific 
 funds to deduct and set off" as against what may appear to be finally the 
 debt which we may owe to the Dominion. But further, we are entitled 
 besides to the Municipalities Fund, respecting an asset of $302,533.56, 
 the Upper Canada Improvement Fund $124,685.18, and we also have 
 our share of the value of the library belonging to the former Province of 
 Canada, amounting to $125,541, which makes an addition to the three 
 millions of upwards of half-a-million. Further, amongst the joint assets 
 which, under the British North America Act, were declared to be the 
 property of Quebec and Ontario jointly, and under the distribution 
 which the arbitrators made of these joint assets, we have this very large 
 amount as the share of Ontario — ^an amount nominally footing up to 
 
FINANCIAL STATEMENT. 9 
 
 nearly seven millions of dollars — namely, the debt from the Upper 
 Canada Building Fund, amounting to $36,800 ; the Law Society of Upper 
 Canada Debentures account, amounting to $156,015 ; the Municipal 
 Loan Fund Indebtedness, amounting to $6,792,136 ; the Agriaultural 
 Society of Upper Canada debt, $4,000 ; and the University Permanent 
 Fund, $1,220 — making in gross, $6,990,171 from these joint assets ; so 
 that assuming that this Municipal Loan Fund debt is to be dealt with 
 during the coming Legislature 
 
 Mr. Rykert — The coming Legislature 1 
 
 Hon. Mr. Crooks — I mean during the present Session. Assuming 
 that this matter is to be dealt with during the present Session, we are in 
 a position to claim that on the final adjustment of our accounts with the 
 Dominion of Canada, a small sum, at least not a large sum, will stand 
 against us Sif, our share of the excess of debt. It is scarcely necessary to 
 assume to arrive at the amount until it can be absolutely determined 
 what was the correct amount of the debt of the Province of Canada on 
 the 30th of June, 1867. 
 
 Such then being relatively our position v/ith reference to our debts and 
 assets, I come next to invite the attention of hon. gentlemen to a con- 
 sideration of the sources from which we derive our income. Our income 
 is attributable to sources which to a certain extent are fixed, or at all 
 events sufficiently reliable or permanent as to make light the duty of 
 any Treasurer who is called upon to submit for the consideration of this 
 House a vote of ways and means, and not to call from him the display 
 of any particular financial inventive ability. Most Ministers who are 
 charged with the finances of a country are called upon annually to 
 consider a financial policy which will result in the return of such ways 
 and means as will be sufficient to meet the contemplated expenditures of 
 the country ; but in this Province the Treasurer has no opportunity for 
 the exercise of any such ability. He cannot even go as high as the pre- 
 sent English Chancellor of the Exchequer, when he assumed to invent 
 as a prolific source of revenue, a tax upon the sale of matches. Even in 
 such small items as matches, the person in this Province holding the posi- 
 tion of Treasurer cannot exercise any ingenuity in looking about him 
 for a measure of increasing his revenue, by a new imposition upon the 
 public. Our position in that respect is a very limited one, and except 
 with regard to the matters of licenses and stamps on legal documents, it 
 is beyoni the authority of this Legislature or of the Finance Minister 
 
10 FINANCIAL STATEMENT 
 
 in charge of the affairs of the Province, to look around for new sources 
 from which to make a revenue— all the sources of incomr which I havo 
 to mention are definite. The first source which can form the basis of a 
 correct annual estimate is that portion of our income which comes from 
 Dominion sources. Hon. gentlemen will recollect that from Dominion 
 sources we are entitled to two payments — one a specific payment of 
 $80,000 a year, and another the subsidy; based on the population of 
 1861, amounting to |1, 116,872. These two amounts together result in 
 our itjceiving $1,196,872 ; but as against that the Dominion assumes to 
 charge us with five per cent, interest on the assumed portion of the 
 excess of the public debt which T have mentioned — namely, $291,666. 
 But these three special funds which I have named — the Upper Canada 
 Grammar School Fund, the Upper Canada Building Fund, and the Com- 
 mon School Fund — are still retained by the Dominion, and they pay us 
 on these funds interest at the rates which I have mentioned, and that 
 results in our being able to call upon the Dominion to pay us annually 
 an additional sum of $149,694, so, as the net result of our arrangements 
 with the Dominion Government, we can rightfully demand them to pay 
 us $1,054,900 a year. Then we have what is called the Consolidated 
 Eevenue Fund, the most prolific source from which the Province derives 
 its income under this fund, being in connection with the Department 
 presided over by my lion, friend on my right (Commissioner of Crown 
 Lands). That Department may be looked upon, under the able manage- 
 ment of my hon. friend — under an improved management, as this House 
 and the country are fairly able to ascribe to him — to furnish nearly a million 
 of dollars. The Crown and Grammar School Lands may be looked upon 
 as producing annually $150,000 ; Woods and Forests, $800,000. I will 
 give hon. members the exact figures, but I am speaking now of our pro- 
 bable income — what the House and country may look upon as its ordi- 
 nary income, having regard to the sources from which it proceeds. The 
 next item is $50,000 for Mining Lands, which together with the items 
 before mentioned, makes a million of dollars from the Crown 
 Lands Department. The next item is the Municipal Loan Fund debt— 
 an item which must disappear in time. This is an item which has given 
 a considerable amount of revenue, and which the hon. member for 
 Brant estimated should return $200,000 a year; but which last year gave 
 us only $70,000, and which I have put down as $50,000. Then the next 
 item is interest on investments, $200,000, but of course this amount 
 
FINANCIAL STATEMENT. IT 
 
 cannot be regarded as permanent, for if the amount invested is dimi- 
 nished by payments in regard to the Railway Aid Fund, and the pro- 
 posed distribution amongst the municipaUties, that source of u. come will 
 also in future years disappear. I take credit for it as a source of income 
 for this year, to the extent of $200,000, as a sum which may be pro- 
 perly estimated. For Licenses, I put down $60,000 ; the actual amounts 
 received are greater. Casual revenue I estimate at $20,000 ; Algoma 
 taxes, $6,000 ; Law stamps, less than one-half the amount received Ift.it 
 year, allowance being made for a reduction, $40,000 ; Education Depart- 
 ment, $45,000 ; and Public Institutions, $20,000 ; making from what 
 is called the Consolidated Revenue Fund, $1,441,000. Then there is a 
 third source from which provincial income arises, and that is called the 
 open accounts, involving the Municipalities Fund, $80,000 ; Common 
 School Lands, $70,000 ; Marriage Licenses, $35,000 ; together $185,000, 
 and making $2,680,000 of probable income for the year. In regard to 
 two of these sources of supply, the Municipalities Fund and the Com- 
 mon School Fund, they are simply introduced as a set-off against expen- 
 diture of similar amounts shown on the other side. These amounts are 
 paid into the Department, to be paid out during the year. 
 
 In order that the House may understand whether the amount which 
 I have estimated may be looked upon as a reliable and normal amount 
 to be received in any given year, I may ask the House to refer to the 
 amounts estimated for in each year from 1868 down to the present time. 
 Now in 1868 the amount estimated by the hon. member for South 
 Brant was $2,202,068. The amount estimated for 1870 was $2,710,518. 
 For 1871 the estimate was $2,660,538, and Mr. Mackenzie's estimate for 
 1872 was $2,624,064. I merely ask hon. members to draw the deduc- 
 tion from these figures that the normal income of this Province may be 
 safely placed at two millions and a-half, even having regard to deduc- 
 tions which will arise in the future. Having given hon. gentlemen 
 the approximate estimates for the years I have mentioned, I will 
 give them the actual receipts for the same years in order that 
 they may test by the actual results the correctness of the inference 
 which I have asked them to draw in regard to the income of future 
 years. In 1869 the actual income, after paying the Dominion the inter- 
 est on the excess of debt, was $2,333,512, while the estimated receipts 
 were less than that amount. In 1870 the amount received was $2,209, 
 029, falling short of the estimate by nearly half a million, the deficit axis- 
 
12 , FINANCIAL STATEMENT. 
 
 itig from the receipts in the Crown Lands Department being below 
 what they were estimated at. In 1871 the receipts were $2,333,179, 
 while the estimated receipts were taken at |2,6G0,538, a falling off of up- 
 wards of ^300,000 from the estimates; while in 1872, the year just 
 closed, the actual receipts were $3,060,749 as contrasted with the esti- 
 mate of $2,624,000. 
 
 Mr. Rykert, — The receipts included the timber sale. 
 
 Hon. Mr. Crooks, — In regard to the actual receipts from woods and 
 forests in 1871 and 1872 there is this difference. In 1871 the amount 
 received was $24^,983, while in 1872 the amount was $973,239, showing 
 a difference of :;5720,000. (Hear hear.) Well, now, with regard to the 
 sale I may mention to hon. gentlemen that less than half of the receipts 
 which arose from the sale of the limits on the north shore of Lake 
 Huron are brought into the accounts of last year, and that a large 
 portion of the amounts received from that source will appear in the ac- 
 counts of the present year. 
 
 Mr. Rykert, — lue notes are included in the sale. 
 
 Hon. Mr. Crooks, — No, none whatever. I am speaking of actual 
 cash received. The amounts received from the woods and forests branch 
 of the Crown Lands Department for 1872 involve nothing but actual 
 cash placed to the credit of the Treasury Department. In mak- 
 ing payments on account of Crown Lands, payments are made at 
 the nearest points and into the most available banks, and these are then 
 transferred to the creflit of the Treasurer's account, so that when I speak 
 of this $973,000 being received from the woods and forests branch of the 
 Department, I wish hon. gentlemen to understand that less than $300,- 
 000 of the proceeds of the sale are included in that amount. 
 
 Mr. Rykert, — What is the exact amount 1 
 
 Hon. Mr. Crooks (after consultation with Mr. Scott),- I beg hon. 
 gentlemen to excii i me. I tind that I have been unwittingly led into 
 an error with regard vo the receipts in 1871 from this source, the public 
 accounts for 1871 being erroneous. In the public accounts for 1871, 
 statement one shows as the amount received from woods and forests 
 $246,983, the amount of the figure which I gave. The Crown Lands 
 sales are credited with $403,463. Now it appears that these credits have 
 been here transposed, as my hon. friend the Commissioner has pointed 
 out to me, and the receipts from woods and forests should be the latter 
 
FINANCIAL STATEMENT. 1$ 
 
 figure. Of course it was impossible for me to do more than state to the 
 House the information as it was there giveo me. 
 
 Mr, Rykert, — The hon. gentleman surely does not rely upon the 
 printed accounts in making his estimates. I can point out many errors 
 in them. 
 
 Hon. Mr. Crooks, — Probably, only typographical errors. Hon. gen 
 tlemen will thoroughly understand that in this large amount received from 
 the woods and forests branch, less than a moiety of the results of the sale 
 is included, and hon. members will see that less than a moiety is included 
 when I mention this circumstance, that I was enabled in January 1873 to 
 add $600,000 to the amounts already invested — in other words, the Trea- 
 surer in the first month of this year had so much of actual cash at his cre- 
 dit over and above the demands made upon him on account of the Rail- 
 way Subsidy Fund and other demands, both current and as against 
 capital, that he was enabled to add the sum of $600,000 to the amount 
 of his investments since the 31st December 1872. (Hear, hear.) 
 
 Mr. Rykert, — You were to tell us the amount received from the 
 sale. 
 
 Hon Mr. Crooks, — All that information will be given to honourable 
 gentlemen at the proper time and \\4th the proper explanations. What 
 I wished honourable gentlemen to understand was the comparison 
 between the amounts received and the amounts estimated to be received. 
 Another guide which honourable members may take as to our expendi- 
 ture with reference to our total income may be found by a comparison of 
 the estimates of each year with the actual expenditure in these years ; 
 and honourable members will be gratified, on reading that comparison, 
 to find that in every instance there has been a less amount expended 
 than was estimated, and that, in some years, a considerable diflFereiice 
 exists between the amount expended and that which was asked from 
 the Legislature. In 1872, there was unexpended of the amount appro- 
 priated upwards of half a million of dollars — in other words, the expen- 
 diture undertaken by the Government last year was less by $500,000 
 than the amount which the Legislature authorised to be expended. 
 
 Hon. Mr. Cameron, — To make that statement of any value, we ought 
 to know the particular items which go to make up the difference. 
 
 Mr. Crooks,— First of all I will give the gross results, which honour- 
 able gentlemen may find by turning to the statement commencing on 
 page 146 and closing on page 149 of the public accounts of this year. 
 
FINANCIAL STATEMENT. 
 
 They will find that the total amount of the appropriation for 1872 was 
 ^2,312,633, while the amount actually expended was $1,847,956, leav- 
 ing unexpended $540,817. Then if honourable members will refer to 
 the year 1871, they will find that there was the large sum of three-quar- 
 ters of a million unexpended for that yuar under the appropriation. 
 The appropriation for 1871 vas nearl;^ $2,600,009, che exact figures are 
 $2,581,560, while tte amount expended was $^ ,816,866. In 1870, the 
 amount unexpended of the appropriatioi . was $450,383; in 1869, 
 $179,305. So that in none of those years has the actual expenditure 
 reached the sum of two millions of dollars. Now, my honourable friend 
 has asked me to point out with respect to what particular service the 
 amount appropriated remained unexpended. Well, in all of these unex- 
 pended amounts, the public works as a rule involve the larger item. In 
 1872, the public works involve nearly $300,000, and so again in 1871. 
 In both 1871 and 1872 the amounts unexpended of the public works 
 appropriation involve as much as $300,000, but on several other items 
 were amounts expended less than the estimates. 
 
 Now, I will ask honoura})le gentlemen to follow me in arriving at a 
 comparison between the actual position of the Province with reference 
 to its assets on the 31st of December, 1872, and its position at that 
 period of the preceding year. I ask them to see the improvement that 
 has taken place in the position of the Province during the year just 
 closed. On reference to the public accounts of 1872, honourable mem- 
 bers will find that on the 31st December, 1871, the Province had in a 
 state of investment the sum of $3,637,979 ; it had cash in the bank, 
 $172,985 ; and up to that period, 31st December, 1871, it had expended 
 on the creation of property of value to the Province— in other words, in 
 erecting public works and buildings which are of the nature of perma- 
 nent improvements which would give to that extent an addition to the 
 value of the works and buildings owned by the Province the sum of 
 $1,208,662. In other words, it had invested in Public Works, im- 
 provements and buildings $1,208,662, apart from expenditure which 
 disappears as it is being expended, and which has no corporeal repre- 
 sentative, although it has added to the progress of the country and to the 
 wollbeing of its inhabitants; but in the shape of visible representation in 
 respect to Provincial expenditure since 1867, we have the large sura 
 I have mentioned, and which being added to the cash in hand 
 and cash invested, amounts to$5,019,627— in other words, the Province 
 
FINANCIAL STATEMENT. 16 
 
 could then clearly claim to own property and value in cash investments 
 to the amount of over five millions. Now, take the Slst December, 
 1872, and see the position of the Province in this particular. The 
 amount under investment has increased upwards of $600,000, being, on 
 the 31 st December, 1872, $4,297,979, the details of which honourable 
 members will find by reference to the public accounts of 1872, statement 
 11, page 24. The cash in the bank amounted to $352,991. 
 
 Hon. Mr. Cameron, — That is, cash in the Bank, unproductive. 
 
 Hon. Mr. Crooks, — Yes, which was there to be drawn on or chequed 
 against. Of course it was made productive afterwards, when, as I have 
 stated, I invested $600,000 in January, and a portion of this amount 
 of $352,991 was included in that investment. Besides the ex- 
 penditure on Public Works which I have mentioned, up to ihe 31st 
 December, 1871, there was a large additional amount expended in 1872, 
 $226,764, making the Public Works up to that year amount to a sum 
 altogether of $1,475,427. In addition to that, $372,786 was paid in 
 connection with the Railway Fund. Hon. members will understand that 
 the amount which the Legislature thought fit to appropriate last ses- 
 sion and the previous session in aid of railways, has been carried by me 
 to a distinct and separate fund ; in other words, the Legislature having 
 appropriated $1,900,000 for a specific purpose, I have carried that to a 
 specific account, called the Railway Fund Account, and from this fund 
 sums are from time to time drawn. 
 
 Hon. Mr. Cameron,— Have you invested the money of that fund 1 
 
 Hon. Mr. Crooks,— The only way in which the amount represented 
 in that fund may be considered as being invested, is by considering the 
 portion of the amount now invested which may be called upon to 
 answer the demands on the Railway Fund as the fund in which this 
 Railway Aid Fund is invested. 
 
 Hon. Mr. Cameron,— What I want to understand is, do you con- 
 sider this Railway Fund of $1,900,000 as invested, and the interest 
 accruing therefrom going to swell the amount of the fund ? 
 
 Hon. Mr. Crooks,— We are not bound by the Act to add interest 
 
 to the fund. 
 
 Hon. Mr. Cameron,— Then there was no necessity for a special ac- 
 count. It might have been as well kept in the Consolidated Revenue 
 
 Fund ? 
 
 Hon. Mr. Crooks,— Except to make it a distinct fund. In connec- 
 
15 FINANCIAL STATEMENT. 
 
 tion with this account, hon. gentlemen will see that $372,786 of the re- 
 ceipts or incoming of last year w \8 applied to meet drafts on this fund. 
 The position oi the Province was $1,479,556 better on the Slst of 
 December, 1872, than it was on the Slst of December, 1871. I think 
 that hon. members will not say that that is not a fair financial begin- 
 ning for a government which, for the first time for a long number of 
 years, has been under the control of gentlemen belonging to the paity 
 
 of Reform. 
 
 Hon. Mr. Cameron, — The saving has been effected out of the 
 expenditure on public buildings, and the receipts from the sale of 
 
 Crown timber. 
 
 Hon. Mr. Crooks, — The comparison is neverthelesss such as I have 
 made This Province has improved in its resources nearly a million 
 and-a-half in one year alone. 
 
 My hon. friends will see further that in connection with the financial 
 operations of the government, we have made two moves entiiely to the 
 advantage of the country — two important moves, the first of which 
 was in removing the funds of the Proviiice from a banking institution 
 which is in no sense identified with the business interests of Ontario — 
 an institution which on more than one occasion has declared under the 
 control of its president and great financial manager, that Upper Canada 
 as a banking field was unworthy of its attention. We have taken our 
 public account from an Institution which was entirely opposed to 
 making this Province the field of its own financial operations, and trans- 
 ferred it to the hands of Banks which are entirely Ontario Banks, 
 whose capital is owned by our neighbours and our friends, whose head- 
 offices are here in this City, and whose whole financial ability is devoted 
 to the advancement of the Province. (Hear, hear.) We have trans- 
 ferred what is equivalent to a million-and-a-half of dollars to provincial 
 Banks, which are now using it in developing the resources of Ontario, 
 instead of its being used in foreign financial centres for the purpose 
 of swelling the enormous profits of a banking institution which to pU 
 intents and purposes is foreign to the Province. Then we have 
 made another improvement. We insisted that these cash balances 
 left in the different banking institutions should yield us at least 
 five per cent., as these amounts at these banks could be safely anu 
 securely used by thetn at a profit which would be reasonable over the 
 five per cent, which they should pay to us. (Hear, hear.) In these 
 
FINANCIAL STATEMENT. 17 
 
 two respects it appears to me that the financial policy of my predeces- 
 sor, tli.9 Hon. Mr. Mackenzie, was certainly a success, and entirely in 
 the right direction, having regard to the best interests of the Province 
 of Ontario. 
 
 If hon. gentlemen will take the invested fund which I have men- 
 tioned, and deduct from that the balance still payable in connection 
 with this Railway Fund, they will see that we would still have a funded 
 balance of 12,670,765, and we have in investment $4,297,000. I am 
 afraid that I am wearying hon. members with this statement ; but it 
 was necessary that I should go through this same course with a view 
 of informing myself on all these points, so indispensable to a know- 
 ledge of the financial position of the country, 
 
 Mr. Rykert,— Will the hon. gentleman state the balance on lihe 
 first day of January after giving credit to the Railway Fund for 
 $200,000 ? 
 
 Hon. Mr. Crooks, — As I understand the hon. gentleman, he wishes 
 to understand what would be the position of the Province with refer- 
 ence to its invested assets, presuming that there had been deducted 
 therefrom all the amount to the credit of the Railway Fund — assuming 
 that during the present year the demands upon the Railway Fund 
 would be sufficient to exhaust it. There would then be $1,627,214 to 
 be provided for out of our invested assets. 
 
 Mr. Rykert,— That includes the $100,000 of last year. 
 
 Hon. Mr. Crooks, — Yes. So that we still have in investment 
 $2,670,765, which is a perfectly clear asset, except so far as that it is 
 subject to certain promises in connection with this scheme of distribu- 
 tion. 
 
 If my honourable friends will now allow me, I Mill proceed to what 
 more immediately concerns them, that is what I estimate will be the re- 
 ceipts or income for 1873. I propose to give honourable members what 
 1 take as the basis of the estimated receipts for the current year. Hon- 
 ourable members will recollect the amount of cash in hand ; I take that 
 as it stands, $352,991. I take next as a cash receipt, the interest on 
 investments, at $200,000, a figure which will probably be found to be 
 under the mark. So that I take as cash $552,991. Then I come next 
 to the Crown Lands Department, and I look to the Department to fur- 
 nish the Province with an income of not less than $1,050,000. 
 
 2 
 
18 FINANCIAL STATEMENT. 
 
 Hon. Mr. Eiciiards,— Be kind enough to state the details of that 
 item. 
 
 lion. Mr. Crooks,— The details have been furnished me by my hon- 
 ourable friend the Commissioner for Crown Lands, and amount to 
 $1,285,700 less than last year's receipts, but, in order to be safe, I have 
 taken the lesser amount which I have stated. 
 
 Hon. Mr Richards,— Let us have the details. 
 
 Hon. Mr. Crooks,— The first item is Crown Lands, $190,000; the 
 next is Clergy Lands, $120,000. 
 
 Hon. Mr. Richards,— That is a special fund. 
 
 Hon. Mr. Crooks,— Yes, in this item a special fund is involved, and 
 that is the reason for my taking the amount which I mention. Then, 
 the next is Common School Lands, $80,000 ; Grammar School Fund' 
 $10 000 ; and Woods and Forests, $800,000. 
 
 Hon. Mr. Richards,-! would like to hear the details of that, 
 please. 
 
 Hon. Mr. Crooks,— I will give my honourable friend the figures ; but 
 if he will allow me, I will first go on with this tabular statement. Min- 
 ing lands, $50,000— the actual receipts for last year were $68,000 and 
 upwards. From Woods and Forests the receipts last year were upwards 
 of $900,000. From casual and small fees, $700 ; and amount in sus- 
 pense, $35,000. 
 
 Hon. Mr. CAMER0N,-That may amount to a charge the other way 
 
 Hon. Mr. Crooks,-No, that always results in a revenue, and is 
 looked upon as a yearly item of receipts by the Crown Lands Depart- 
 ment. I next proceed to casual revenue. 
 
 Hon. Mr. RiCHARDS,-The honourable gentleman was going to ex- 
 plam how he derived the $800,000 from Woods and Forests 
 
 Hon. Mr. CE00KS,-The Commissioner has just told me ihat it is to 
 be derived from notes from the sale of limits-the balance still due since 
 autumn— and dues $500,000. 
 
 ,1, !™« ^1 <=^"™«'-™y. ««ely the dues are going to be more than 
 tliat atter the sale of so many limits made. 
 
 Hon. Mr. ScoTT,_They will not be worked the first year. 
 
 Hon. Mr. Crooks.-I think the estimate is very low, but 
 we propose to keep under rather than over the amount to be re- 
 ZTZy, f T "^»f ;^^™»« sources I anticipate $32,000-an amount 
 under that estunated last year. That includes $4,000 from fines and for- 
 
FINANCIAL STATEMENT. Jg 
 
 feitiires ; $2,500 from fees received in Secretary's Office ; $10,000 for 
 advertising in the Ontario Gazette ; $1,500 from the sale of our statutes 
 and journals ;| and $4,000 from the fees on private bills. The next item 
 is for tavern and shop licenses, $70,000— wliich is also less than was re- 
 ceived last year, and I hope that, under a more vigilant system of in- 
 spection, this amount will be increased. Next I take taxes from the 
 District of Algoma, $6,000. For law stamps, I only take credit for 
 $40,000 ; presuming that this burden on the country will bo relieved by 
 one-half. The Education Department is fixed at $50,000, made up from 
 items furnished by the Chief Superintendent. The next item is Public 
 Institutions. After making allowances for that which appears to be 
 consistent with the wish of the Legislature, that the children of persons 
 unable to pay in connection with the Deaf and Dumb and BUnd Insti- 
 tutions shall be allowed to go tjiere at the expense of the country, I look 
 for a return of $24,500. From Dominion sources, inclusive of $35,000 
 for marriage licenses, I look for $1,089,900. I have taken a less amount 
 than the Honourable Commissioner of Crown Lands has furnished me 
 with as the probable receipts from the Municipalities Fund, Clergy Re- 
 serve Lands, and Common School Lands. 
 
 Hon. Mr. Cameron,— Then it is not intended to take any steps for 
 abolishing that source of revenue this year ? 
 
 Hon. Mr. Crooks,— I am merely putting these down as a per contra 
 charge. In the estimates it will be found that two of the items there 
 are for the Municipalities Fund and Laud Improvement Fund, and that 
 this is merely a per contra account, a matter of bookkeeping. These funds 
 are received on the one hand and disbursed on the other, merely passing 
 through the Treasurer's department. I have taken them among the re- 
 ceipts that they may be a set-off to the charges against revenue. I have 
 taken $185,000 as the revenue from these sources— a less amount, as I 
 have said, than the Commissioner has furnished me with as the probable 
 revenue, so that the gross probable receipts for 1873 will equal $3,089, 
 401.75. (Applause.) 
 
 Now honourable members will be desirous to know^what amount 
 is to be expended in connection with the necessary services of the 
 Province during the year 1873. In the estimates of expenditure 
 for the year 1873 which have been brought down, my honourable friends 
 will see that the sum total, as it is termed, amounts to $2,771,028, in 
 which sum honourable gentlemen will find that nearly $270,000 is in- 
 
tO FINANCIAL STATEMENT. 
 
 eluded in connection with the Miinicipalitioa Fund and the Land Im- 
 provement Fund, and $80,074 in connection witli the expenditure of last 
 year, which requires to be covered by a vote of this House — making over 
 $360,000 to represent these three items. In examining the estimates, 
 honourable gentlemen will find, having regard to the figures I have al- 
 ready given to them, that as compared with last year they are in excess 
 of them, although of course, as far as last year is concerned, it is pro- 
 perly chargeable with the $80,074 mentioned. This would make a 
 reduction in our estimated expenditure, and, correctly speaking, the 
 amount to be provided for this year, including the Municipalities and 
 Improvement Fund, is $2,690,994 ; and the amount of last year's expend- 
 iture should bo $2,392,000. The sum I have mentioned for this year 
 would bo $2,690,994; the figure representing the total of 1871 was $2, 
 690,000 ; so that there is not a very grefit difference between the esti- 
 mates of this year and those of 71 — a difference of about $200,000. My 
 honourable friends will desire that I should point out specifically the dif- 
 ference between the amounts asked for this year, and those asked for last 
 year in reference to the particular heads of the Provincial service. I 
 have made a tabular statement which I will run over as it will not in- 
 volve much time, and my honourable friends will see at a glance in what 
 particular departments and as to what particular services there has been 
 a larger amount asked for this year, than was asked for last year. Under 
 the head of Civil Government, ^irst page, honourable gentlemen will find 
 that the excess is $18,095. The amount asked for Legislation is less 
 this yeaa' than it was last year by $9,540. The amount asked for in 
 cornection with Colonization Roads exceeds by $66,594 the amount 
 voted last year. On referring to page five of the pamphlet containing 
 the estimates, it will be found, Mr. Speaker, that there is given in detail, 
 each particular road in respect to which this vote of $146,300 is to be 
 asked. It would appear from that, that the Hon. Commissioner of Crown 
 Lands, with, whom this particular expenditure rests, has carefully consi- 
 dered the wants of the various sections of the Province, and from the 
 different works of this character, with reference to which he asks certain 
 expenditures, that he proposes as far as can be done during the current 
 year to push back these communications, these Colonization Roads, with 
 a view of advancing the settlement into every portion of the back coun- 
 try. He has divided the Province into three sections, which he terms 
 the north, the west, and the east sections; the east and the west sections 
 
FINANCIAL STATEMENT. SI 
 
 beiiig separated by the Hastings Road, and the north section comprising 
 the Algoma District, which has, in truth, during the last year become a 
 now acquisition to our country. Until last year the whole region north 
 of Lake Superior was almost a wilderness, and except in so far as the 
 Dawson exploration party had assumed to establish a small village at 
 Thunder Bay, that region was almost destitute of inhabitants. There 
 were a few light-house keepers there, one of whom in 1871, from mere 
 isolation, was found dead of starvation. Not having had any mode of 
 communicating with his fellow-beings, he was found dead from actual 
 want. That wiis the condition of the Lake Superior region in 1871. In 
 1872 an immense activity has been induced in consequence of the success 
 that has attende<l the development of certain -of the mineral lands, and 
 I believe that with proper encouragement and a judicious expenditure 
 of Government money, the mineral resources of that large area of 
 our country will be found even still more rich than is at present ex- 
 pected. At present one may say that only a very small fraction of that 
 vast territory has been in any way explored. My own view is, that the 
 mineral wealth to be derived from that vast region will in the more re- 
 mote future come in as a satisfactory supplement, assuming that the 
 wealth we now derive from the products of our forests disappears. In 
 order to encourage then the exploration and settlement of this vast re- 
 gion, and to bring the large settlements which are springing up on the 
 north shore of Lake Superior into communication with the rest of the 
 world, the Commissior 3r asks the sum of $32,500. The different roads in 
 connection with which this amount is asked, will bo more fully defined when 
 we come to the consideration of these items. Then in regard to the noxt 
 section, honourable members will see that it involves the extension of 
 existing Colonization Roads into the north-west territory, pointing in the 
 direction of Lake Nipissing. We have asked for this service $51,800. 
 For the eastern section, which embraces the region west of the Ottawa 
 and the Bay of Quinte, the Commissioner asks $35,000. The plan em- 
 braces the opening up of the present system of roads running northerly 
 from Kingston and easterly to Ottawa. For general purposes the esti- •* 
 mate is $27,000 ; the total asked for in this branch of the public service 
 being $146,300 ; an excess over last year of $66,000. For the adminis- 
 tration of justice the amount asked, $232,490, exceeds that aked in 1872 
 by $31,285. Honourable gentlemen will find in the details which go to 
 make up this total amount an item of $30,000, taken for the first time, 
 
22 FINANCIAI, STATEMENT. 
 
 to cover the expenses of witnesses forced to attend the trial of criminal 
 cases ; so that the total amount asked for, if that item is taken into con- 
 sideration, does not exceed last year's estimate excepting by the small 
 sum of $1,285. Next comes service No. 5, Public Buildings, in regard 
 to which it Avill be seen that there is a decrease this year of $56,438. 
 In Public Works, there is an excess this year of $49,280 ; and in Asy- 
 lums and Public Institutions, maintenance, $16,941. This increase 
 arises in part from the consideration of the number of pupils in the 
 institutions who are now to be supported at the public expense. 
 In Education there is a difference of $48,195 ; the total being $470,213. 
 That amount is not so large as the amount which the Chief Super- 
 intendent of Education ask( d for, which would have made the increase 
 equal to nearly $80,000. The principal difference is in connection with 
 the Public Grant, the addition being $20,000. Considering the pro- 
 portionate amount which the Public Grant bore to the amount raised 
 by local taxation in aid of Education, it appeared to me desirable 
 that that relation should be maintained. It appeared from the Chief 
 Superintendent's statement that the amount of the Public Grant 
 was about one-tenth of the amount raised from local sources for educa- 
 tional purposes ; and in deciding upon the amount to be fixed for this 
 year we were keeping the position relatively to that which we occupied 
 last year, insomuch as the increase of last year in the amounts raised 
 from local sources was about $200,000. For Agriculture and Arts an in- 
 creased sum of $6,000 is asked for. In Emigration there is a large 
 increase, amounting to $55,824, the details of which will be found on 
 pages 24 and 25. In Hospitals and Charities there is a small addition 
 of $920. For Literary and Scientific institutions the amount remains 
 the same. For the School of Practical Science, $1,800 additional are 
 asked for. For unforeseen and unprovided, the same amount is asked 
 for. When you come to the Crown Lands Department expenditure, 
 you will find a large increase. The amount in addition is $84,892. The 
 details are given at page 28, and honourable members will find that 
 $53,000 are in respect to special services. There remains the boundary 
 between Ontario and Quebec lo be defined ; for settling the question as 
 to our west and north boundary, $10,000 is asked for ; and an amount is 
 asked for to determine certain questions with reference to the claims of 
 the Hudson's Bay Company on Lakes Superior and Huron. $7,500 is 
 asked to define the boundary between the timber limits and the Crown 
 
FINANCIAL STATEMENT. 28 
 
 domain. An amount is asked for a survey on Lake Huron, but that 
 amount is chargeable to limit-holders, and will be returned to the Trea- 
 sury. An amount is asked which in my mind points to a movement in 
 a right direction. So far, notwithstanding the enormous wealth which 
 still lies hid in this Province with regard to its mineral resources, noth- 
 ing has been hitherto done to collect that amount of information on the 
 subject which the people of this Province have a right to expect. The 
 Government has done nothing for the purpose of informing itself or the 
 Province as to the extent or probable value of its vast mineral resources ; 
 but $4,000 is now asked for that purpose. $5,000 is asked to be returned 
 to certain municipalities in respect to their share of timber cut on road 
 allowances ; and so on. Bat honourable gentlemen will find that al- 
 though the amount asked for this year in respect of the Crown Lands 
 services is in excess of the amount asked for last year, that excess repre- 
 sents items of expenditure which will result 'n being of great value to 
 our Province. The whole excess is $84,084. 
 
 These are some of the principal points to which at present I would 
 ask the attention of hon. members, and I would propose to close my 
 present statement by introducing a reference to — 
 
 Mr. Eykert,— Will the hon. gentleman state before going any further, 
 what the Drainage "Works, under the head of Public Works, on page 
 15, are for 1 
 
 Hon. Mr. Crooks, — That amount is to cover the expenditure on the 
 works already authorized by the Legislature in connection with the 
 Bills of my hon. friend the Commissioner of Public Works. The Com- 
 missioner has fully informed the House on these matters, and when the 
 items are come to, the fullest information will be given to the hon. 
 gentleman. 
 
 In connection with civil government, I may mention toll mem- 
 bers that there has been a slight increase in the salaries of some of 
 the oflficers connected with the different departments. Thy actual 
 figures in connection with each particular office appear in the estimates ; 
 and I may mention to hon. members, that although the Government 
 has made this increase, which it recommends the House to adopt, the 
 increase is very small indeed relatively to the duties performed, and 
 having regard to the payment for similar duties in other services. (Hear, 
 hear.) My hon. friends will not be able to find in any of the increases 
 made, that we have gone as high or as far as similar services are com- 
 
24 FINANCIAL STATEMENT. 
 
 pensated for in regard to other Governments and in regard to other 
 employments. In fact, we have been importuned as a Government to 
 go further. Take for instance the Department of Education. The 
 Chief Superintendent has presented data and representations in the 
 strongest possible form, for this Government's acceding to all his 
 suggestions ; but we nevertheless found it impossible at the present 
 time, without further consideration, without understanding fully the 
 views of the House and country, to go as far as the Chief Superintend- 
 ent desired with regard to any persons who were connected with the 
 different duties which his Department discharges. He states in very 
 forcible and truthful language the position of each of these officials, and 
 he summarises the whole question in these words, which I have ex- 
 tracted from his letter of the 7th December last. He says, and 
 no doubt truthfully (as hon. members must see if they expect the 
 country to be faithfully and efficiently served by its servants), " It is 
 bad economy, detrimental to public service, and unjust to individuals, 
 to keep the remuneration of competent and faithful men in the public 
 departments down to the point of starvation." Acting in connec- 
 tion with these considerations, but finding that in certain instances 
 in which the case made out by the Chief Superintendent had to 
 be yielded to, the Government has thought fit to increase slightly 
 the salaries attached to the very efficient masters and mistresses who 
 have charge of the Model School ; and in assuming to make that in- 
 crease, the Government has merely brought up these salaries to the 
 position which they were in some two years since, so although that 
 is an increase over last year, yet having regard to the salaries paid 
 two years ago, it is not an increase. Of course, as each item comes up, 
 hon. members will have an opportunity of obtaining the fullest informa- 
 tion ; but I may mention to the House, that in assuming to take a very 
 slight step in advancing salaries, the Government has not acted without 
 carefully weighing in each case the claims put forward for an increase 
 of pay. 
 
 In closing this statement, I may be allowed to call the attention of 
 the hon. members to two general statements, which demonstrate the 
 extraordinary progress which this Province is making in all directions. 
 If hon. members would refer to the position which the two Provinces of 
 Ontario and Quebec now occupy in regard to the deposits in the differ- 
 ent banking institutions which may be said to belong to these two 
 
FINANCIAL STATEMENT. 25 
 
 Provinces, without reference to the other Provinces constituting the 
 Dominion, they will find that the deposits in the banks have doubled 
 since 1867. In 1867 the deposits amounted to $29,500,000; in 
 1872 to $58,200,000 — a doubling of the cash resources of the com- 
 munity in five years. Hon. gentlemen will also see the large im- 
 petus given to trade generally, and the large volume into which 
 our trade has swollen, if they refer by contrast to the amount of 
 discounts and loans made by the banking institutions of the two 
 Provinces of Quebec and Ontario. In 1867, the gross amount was 
 $50,600,000, and in 1872 that amount had more than doubled, to 
 $107,200,000 — a most satisfactory increase in the volume of our trade 
 in five years. But, what will furnish data even more satisfactory than 
 this which I have just supplied to the House in regard to our great 
 increase in material wealth, honourable gentlemen will find in a state- 
 ment which I have had prepared connected with the expenditure on 
 railways. That statement has relation to the expenditure that has 
 taken place since we became a separate Province in 1867, and to 
 railways constructed and moneys expended within the limits of the Pro- 
 vince of Ontario alone. The table which I have here is a reliable one, 
 having been prepared by Mr. Moles^ orth, C. E., and shows that between 
 the 1st of July, 1867, and the 1st of January, 1873, there have been 1,484 
 miles of railway in course of construction, the estimated cost of which 
 amounts to upwards of $35,000,000, while the amount actually ex- 
 pended since 1st July, 1867, is $18,915,871, leaving still to be expended 
 $16,000,000. Honourable members will see from this that the country 
 has received an addition to its fixed wealth, in the shape of permanent 
 improvements of the highest value to the community, and which are 
 indispensable in this age of progress, of nearly $19,000,000. 
 
 Mr. Lauder, — Does the statement show the amounts that have been 
 granted by municipal bonuses 1 
 
 Hon. Mr. Crooks, — This statement includes the moneys supplied to 
 the railways from all parts of the province, but does not specify parti- 
 cularly the amounts received from municipalities. It shows the money ac- 
 tually expended by the railways, and drawn by them from all the sources 
 that were open to them. This Province has spent less than $400,000. 
 In other words, our railway policy, in simply assuming to give a small 
 amount — in many instances just enough to supplement the capital raised 
 from other sources — has encouraged the development of railways to such 
 
26 FINANCIAL STATEMENT. 
 
 an extent that upon actual payment of less than |400,000, and upon 
 the promised contribution of about $2,000,000, we have secured up to 
 the present time an actual expenditure in railways of $19,000,000, and 
 the contemplated expenditure of $16,000,000 more. This only in- 
 cludes those which are now actually in course of construction. 
 
 Mr. Lauder,— Who started the railway policy ? 
 
 Hon. Mr. Crooks, — I should be sorry to deprive any member 
 of the House, whether he at one time formed a part of the Go- 
 vernment or was a private member, of any portion of the credit 
 due to him for taking an enlightened view of the course that the Pro- 
 vince ought to pursue in regard to railway development. I do not in- 
 tend to throw the slightest imputation upon the former Government, or 
 any member of the House ; I merely wish to point out to the country, 
 and it will be satisfactory to the country to know it, that, on account of 
 these small contributions on the part of the Province, we have secured 
 already the expenditure of $19,000,000, and that in connection with 
 our further proposed contributions of $2,000,000 we expect an addition 
 of $1 6,000,000 further. These railways are all in course of construction, 
 and many of them have been completed. The Canada Southern Rail- 
 way is completed at a cost of $7,000,000. 
 
 Mr. Cameron,— What did it get from the Government 1 
 
 Hon. Mr. Crooks,— Nothing whatever. The Canada Air Line is also 
 completed at a cost of $3,000,000 ; but although these lines were not 
 aided by the Government, nevertheless the immediate effect of this 
 policy was to develope railways and to make railway communication 
 and railway progress a prominent idea in the minds of the whole people 
 of the country; not only that, but it attracted the attention of capitalists 
 abroad, and they began to see that the western peninsula after all offer- 
 ed the shortest route between the great West and the shipping points 
 on the Atlantic coast. Hon. members may carry this table a step fur- 
 ther, and may say that a very large portion of this expenditure is attri- 
 butable to that change which took place constitutionally, and which 
 left us in a position to deal with all local enterprises as this Legislature 
 might think proper. (Hear, hear.) This was exemplified in a very 
 marked degree indeed, in the first session of the first Legislature of this 
 Province. I had then occasion to attend before the Railway Committee 
 as counsel in connection with several schemes, ard I found that even 
 the more intelligent of the members who composed that committee and 
 
FINANCUL STATEMENT. 27 
 
 this House were largely influenced in their views — I do not mean to say 
 mala fide or otherwise than honestly, but nevertheless they were largely 
 influenced by existing railways ; and that influence which was nearly 
 being successfully used here to stifle all the new enterprises, and which 
 nearly succeeded in stifling several important ones, some of which were 
 only able to obtain mutilated charters by a majority of one vote in this 
 Chamber, would have been entirely successful at Quebec or Ottawa, 
 where it would have been impossible, having regard to the position we 
 occupied constitutionally before the 1st July, 1867, for the larger num- 
 ber of those important enterprises which owe their origin to charters of 
 this House, to have taken the first step, for I am convinced that they 
 would have been strangled by the dominant influence which existing 
 railways possessed in connection with the Legislature of the former 
 Province of Canada. Then, in calling the attention of hon. gentlemen 
 to these expenditures which we are making in all directions, to the 
 accumulation of our resources, and to the consequent strengthening of 
 the position of this portion, at least, of the Dominion, I think I may 
 congratulate this House and the country upon the statement I have 
 been able to introduce to them on this occasion ; and I think that such 
 statements are the best answers to those extremely malicious and 
 ignorant articles of a leading journal in the British metropolis. 
 (Hear, hear.) I do not know whether hon. members have read 
 an article which appeared in The Times newspaper a few weeks 
 since, and which assumed to belittle the position of Canada and Cana- 
 dians ; which ascribed to them, in consequence of their political connec- 
 tion with the Mother Country, a position anything but one of self- 
 reliance ; which spoke of their want of intelligence and their dependent 
 condition. I ask hon. gentlemen, and any one who understands the 
 true position of the Provinces which constitute the Dominion, and 
 especially if he understands the position which this Province occupies, 
 and knows the amount which it contributes for the purpose of making 
 education free to every child in the land, whether we are a people that 
 could become more intelligent by any change in our political position ? 
 When the public generally understand that we have added so much to 
 our wealth, have added so much to our actual cash accumulations in the 
 past seven years, have nearly doubled our resources in that respect, and 
 when they learn that from our own resources we are adding to the 
 mileage of railways in this Province nearly 1,500 miles within the last 
 
28 FINANCIAL STATEMENT. 
 
 five years, and have expended nearly $20,000,000 in their construction ; 
 when this Province is able to go further, and relieve a large portion of 
 it which is suffering under a load of debt contracted under circumstances 
 which were quite exceptional ; and when it still possesses a largo ac- 
 cumulated surplus, and has also further expended the very large 
 sums I hsive mentioned in the establishment of every kind of institution 
 which an intelligent and civilized community ought to possess ; can any 
 person conversant with the facts, can any public man, can any one accus- 
 tomed to lead the public mind venture to say that in this Province 
 there is not a self-reliant community ? (Hear, hear. ) I go further, and 
 I say that the advice which is given in this article — the advice that we 
 should take up our freedom for ourselves and become independent of 
 the mother land — is advice that is ignorantly given, and given by a 
 writer who knows nothing of our true position. I say if there is a 
 country in the world which has ceased to be in a condition of ap- 
 prenticeship, it is Canada. (Hear, hear.) Do we not each and all 
 feel that we are capable of protecting ourselves, and are we not 
 ready to go forth, if called upon, to make that protection an actual 
 one 1 Is there amongst the millions upon whom we can rely in con- 
 nection with our defence, a man who would not be prepared to die 
 — the last man in the last ditch if necessary — in the defence of Can- 
 ada ? (Hear, hear.) Nay, I go further and ask in regard to our freedom, 
 can it be said that, in consequence of any possible change in our political 
 condition, this Province can be more free than it is now ? Is there not 
 an intelligent public opinion to influence and guide its people ? That 
 intelligent public opinion has, it is true, been stifled by influences which 
 I am glad to say are now fast disappearing — influences which have 
 placed the Government of this country for years, and the G vernment 
 of this Province until a short time ago, in the hands of men unworthy 
 to control it — (hear, hear) — of men who know nothing of the aspirations 
 of the Canadian people, and who were unable properly to control the 
 destinies of the country. I say, then, there is a public opinion in this 
 country, and that public opinion, so far at least as this Province is con- 
 cerned, has been exercised in such a way as to show plainly and clearly 
 that we belong to " that true north " of which the Poet Laureate sings, 
 which is faithful in its position as a dependency of the British Empire, 
 and that we are able and willing to assert our rights and to maintain 
 them as freemen in the full possession of our freedom. (Cheers.) 
 
FINANCIAL STATEMENT. 29 
 
 1873. 
 
 Estimated Income. 
 1. Cash : 
 
 (1) On hand $352,991 34 
 
 (2) Interest on Investments 200,000 00 
 
 $552,991 34 
 
 1,050,000 00 
 
 2. Crown Lands : 
 
 (1) Crown and Grammar School $200,000 00 
 
 (2) Mining = 50,000 00 
 
 (3) Woods and Forests 800,000 00 
 
 3. Casual Revenue : 
 
 (1) Fines and forfeitures $4,000 
 
 (2) Fees to Provincial Secretary 2,500 
 
 (3) "Gazette" advertising, &c 10,000 
 
 (4) Sale of Statutes and Journals 1,500 
 
 (5) Private Bill Fees 4,000 
 
 ^ 22,000 00 
 
 4. Licenses (Tavern, Shop, &c) 70,000 00 
 
 5. Taxes (Algoma District) 6,000 00 
 
 „ T o. 40,000 00 
 
 6. Law Stamps j ' 
 
 7. Education Department 50,000 00 
 
 8. Public Institutions : 
 
 (1) Reformatory 2,500 00 
 
 (2) Toronto Lunatic Asylum 15,000 00 
 
 (3) London do 3,000 00 
 
 (4) Rockwood do. 1,000 00 
 
 (5) Deaf and Dumb • 2,000 00 
 
 6 Blind I'OOO 00 
 
 24,500 00 
 
 9. Dominion Sources : 
 
 (1) Subsidy $1,196,872 80 ^ 
 
 Less interest on ex- 
 cess of debt 291,G66 66 
 
 905,206 14 
 
30 FINANCIAL STATEMENT. 
 
 (2) Interest on Special Funds $149,694 27 
 
 (3) Marriage Licenses 35,000 00 
 
 1,089,900 41 
 
 10. Special Accounts : 
 
 (1) Common School Lands 70,000 00 
 
 (2) Municipalities' Fund 115,000 00 
 
 185,000 00 
 
 Total estimated income, 1873 $3,090,391 75 
 
FINANCIAL STATEMENT. 
 
 81