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mamsmmmftmmmmm

CANADA:

ITS

FINANCIAL POSITION AND RESOURCES.

*.'■ M

^,X

CANADA;

ITS

FINANCIAL POSITION AND RESOURCES.

THE HON. FRANCIS HINCKS, M.P.P.,

MEMBER OF THE EXECUTIVE COUNCIL,
AND INSPECTOB-aENEBAL OF THE PROVINCE,

LONDON:
JAMES EIDGWAY, 169, PICCADILLY.

M.DCOO.XLIX.

LONDON:

PHIN'TED BY BICRARD KtxnEII,
GRKEN ARBOUR CUUKT, OLD UAILET.

THE RIGHT HON. THE EARL GREY,

HER MAJESTY'S PRINCIPAL SECRETARY OF STATE

FOR THE COLONIFS,

&c. , &e. &o.

My Lord,

I TAKE the liberty of connecting your Lord-
ship's name with a statement which I have prepared,
with a view of placing before the British Public reli-
able information regarding the financial position and
resources of one of the most important colonies of
the Empire. The position occupied by your Lordship,
as Her Majesty's Principal Secretary of State for the
Colonies, would perhaps be a sufficient excuse for my
bringing this subject more particularly under your
notice. But your Lordship has claims on the gra-
titude of Her Majesty's subjects in North America

which I rejoice to have an opportunity of acknow-
ledging. For many years, as a Member of the House
of Commons, both in and out of office, your Lord-
ship exerted the influence which you so deservedly pos-
sessed, in favour of constitutional government in the
Colonies ; and you have since had the high satisftx-
tion, as a responsible minister of the Crown, of giving
full effect to those principles which you so ably advo-
cated in Parliament. At a time hke the present,
when the Colonial Department seems to be the object
of incessant attack, it is to me a pleasing duty to bear
my testimony, humble as it is, in favour of your Lord-
ship's administration, which, I can most unhesitatingly
affirm, has been highly satisfactory tc the people, not
only of Canada, but of the other North American Pro-
vinces. As the son of a statesman whose memory will
ever be held in grateful remembrance by the lovers
of constitutional freedom in all parts of the British
empire, as a near connexion of another eminent
statesman, now deceased, to whom the people of
British America in particular owe a deep debt of gra-
titude, which they take a pride in acknowledging on
all suitable occasions, your Lordship's name is dear to
my fellow-countrymen of all origins. Finally, my Lord,

I am pleased to have an opportunity of expressing
the gratitude which, in common with the great majo-
rity of Her Majesty's Canadian subjects, I feel towards
your Lordship and the Government of which you are
a member, for the support which you have given on a
recent occasion to our respected and beloved Governor-
General, whose entire policy since his first arrival in
Canada has been characterised by wisdom and impar-
tiality. As a member of His Excellency's Adminis-
tration, I should feel some deUcacy in making such a
statement, at such a time as the present, were I not
able to accompany it with another. 1 have held office
under His Excellency for a veiy brief period. Up to
that time, I had been a very decided opponent of the
Administration, to which His Excellency gave the
same cordial constitutional support which he has
extended to his present Ministers, and throughout the
whole of that period I expressed the same sentiments
towards His Excellency, and treated him with the
same respect, as the Representative of my Sovereign,
that I do now, when holding the honourable position
of one of His Excellency's confidential advisers. And
what I have just said of myself, I could, with as
much truth, have said of my colleagues and of the

VIU

entire party tc which I have the honour to belong. I
ha\c stated the reasons which have induced me to
take the hberty of dedicating this pamphlet to your
Lordship. All 7 shall say of it is, that it contains
information which it is highly important, both to the
people of this country and of Canada, that the former
should be in possession of, and which, to the best of
my knowledge, has never been placed before them in
an accessible shape. Should it be productive of any
good whatever, I shall be amply repaid for the little
trouble I have had in preparing it.

I have the honour to be,
My Lord,
With the highest respect.
Your Lordship's most obedient servant,
FRANCIS HINCKS.

Morley's Hotel,
London, June 21st, 1849.

!?!

; ' ,

CANADA:

ITS

FINANCIAL POSITION AND RESOURCES.

The object of this publication is to place before the
Government and people of England, in as compact a
shape as possible, the actual financial position of one
of the most important colonies of the empire, and to
give to those who take an interest in the subject, and
especially to capitaUsts, some idea of the extent of its
resources, the rapid increase of its wealth, the stabiUty
of its institutions, and the perfect reliance which may
be placed on its ability and determination to fulfil all
its pecuniary engagements. Without further preface,
I shall call attention to the statement in the Appendix
marked A., which is "A statement exhibiting the
Financial Position of the Province of Canada on the
31st January 1849.'* This statement has been pre-
pared both in currency and sterling, but I shall only
refer to the figures in sterling. The conversion has been
made at the legal par of Exchange, which is £1. 4*. 4td.
currency to the £. sterling.

The expenditure on Public Works, which is detailed
as fully as I have deemed necessary in a separate state-
ment (Appendix B), is £3,703,781. ds. U. This
amount is partly represented by the debt which I
have classed under five heads for convenience of re-
ference, viz. : — No. 1. The Imperial guaranteed loan,
£1,500,000; No. 2. The debentures, the dividends
on which are payable in London, at the offices of
Messrs. Baring, Brothers and Co., and Messrs. Glyn,
Hallifax, Mills and Co. ; No. 3. The debentures, the
dividends on which are payable in Canada, at the
office of the Receiver-General ; No. 4. Debentiu:es in
small amounts, payable a year after date, with interest,
and receivable for public dues. This issue has been
made with great reluctance, owing to the difficulty
of negociating a loan in London, while it was, at the
same tim-c, absolutely necessary to complete some of
the most important public works. No. 5 consists of
loans from banks, advances from the agents of the
Province in London, and other Uabilities more or less
pressing. These amounts show an aggregate debt of
£3,223,839. 17^. M., or £479,941. 11*. 8^. less than
the expenditure on the works. This latter sum is re-
presented by No. 6. Balance at credit of the Consoli-
dated Revenue Fund, £170,855. 19*. M., from which
is to be deducted cash in hand and balances due to
the Province, as shown in item 12 on the contra side
of the account, amounting to £62,267. 11«. lie?.,
leaving a balance of £108,588. Is. lOJ. No. 7. Re-
demption of public debt, £291,041. ID*. lOof. ; and

the difference between Nos. 8 and 11, which is the
balance in hand of special funds managed by the Pro-
vince. The amount at credit of those funds is shown
by item 8 to be £418,021. Ss. Sd., of which has been
invested (see item 11) £337,709. 155. Sd., leaving
due by the Province, to be invested or paid over,
£80,311. Us.

£^ s. d.
Those items, viz., excess of item 6. . . . 170,855 19 9

over 12 . 62,267 11 11

item 7

excess of item 8 . ,. . 418,021 8 3
over 11 337,709 15 3

£. »• d.

108,588 7 10
291,041 10 10

Amounting in the aggregate to
Which, with the debt, as already
stated

Gives the total amount expended on
Public Works (as per Appendix B) .

}

- 80,311 13

479,941 11 8

3,223,839 17 8

£3,703,781 9 4

The other items of the account may be briefly dis-
missed. The debentures referred to in item 9 have
been loaned on ample security to the Commissioners
for erecting the Toronto Lunatic Asylum, principal
and interest secured by a direct tax on property, regu-
larly p&id — to the Law Society at Toronto, secured by
fees, which will in a short time extinguish the debt —
and to the sufferers by the Quebec fire, secured by
mortgages on real property. By a reference to item
13 on the contra side of the account, it will be seen
that these debentures really form no portion of tlie

B 2

i I

debt. Item 10 is the Sinking Fund applicable to the
repayment of the English guaranteed loan, which, as
appears by item 14 on the contra side of the account,
is invested in the Three per Cent. Consols. The
amount at the credit of the Consolidated Revenue
Fund (see item 6) is £170,855. Ids. 9d. Against this
are to be placed various charges, the paymeiit of which
has been postponed owing to the financial embarrass-
ments of the Province, which will not amount to more
than £70,000; so that it is probable that £100,000
will be transferred to the credit of the account " Re-
demption of the Debt." This will make the amount at
the credit of that account about £391,000, to which
must be added the Sinking Fund (item 10), £44,000,
showing a saving out of the annual revenue of
£435,000 sterling, or upwards of half a million cur-
rency, since the union of the Provinces. When the
comparatively trifling amount of the whole debt, and
the fact that this saving has been effected pending the
completion and opening of the canals, is taken into
consideration, the result must be viewed with great
satisfaction by those interested in the prosperity of the
Province. I doubt if any of the States in the Ame-
rican Union, (or even the Federal Government itself,)
whose bonds obtain a preference with British capi-
talists over the securities of their own fellow-subjects,
can exhibit so satisfactory a statement.

I may observe here, that by an act of the last ses-
sion of the Provincial Parliament, which has received
the assent of the Crown, the entire Revenue from

Public Works, after deducting £20,000 currency per
annum, is permanently appropriated for a Sinking
Fund for the redemption of the debt. The greatest
expectations are entertained with regard to the suc-
cess of these important works ; and when the rapid
increase of revenue pending their completion, as exhi-
bited in Appendix D., is taken into consideration, those
expectations can hardly be considered too sanguine.
It may net be known to those iminterested in the
Canada trade, that a large shipment of railroad iron
has been made this ^ring to Quebec on account of
American Railroad Companies in the Western States
of the Union. I would, therefore, call attention to the
following extract from the * Montreal Herald* of the
25th of May :—

THE CANAL AND WESTERN TRADE.

We hear with much pleasure another proof of the grow-
ing interest felt in our Canadian Canals by the people of
the West. Yesterday, Alfred Kelly, Esq., of Columbus,
arrived in this city for the purpose of making arrange-
ments for the conveyance of 3,000 tons of railway iron,
expected from England, hence to Cleveland, Ohio, for the
purpose of being laid down on the railroad between that
city and Cincinnati. It is expected that 13,000 or 14,000
tons of the whole quantity of railway iron which will be
required for this work, will probably pass by way of our
Canals, at a great saving over the Erie route.

It seems to be considered certain that the states
of Maine, Vermont, and portions of New York and
Massachusetts, will receive a large share of their bread-

stuffs ana provisions by the Welland and St. Lawrence
Canals, which will be open on an average a fortnight
earUer and later than the Erie canal. Besides this
trade, heavy goods of all kinds are likely to be sent to
the Western States from Europe, the Eastern Pro-
vinces, and the West Indies, by way of the St. Law-
rence. I can scarcely believe that under such circum-
stances Canada will appeal in vain to British capitalists
for a small loan, the security for which is as ample as
can be offered by any government. I shall insert
here a letter which I had the honour of addressing
some months ago to Messrs. Baring, Brothers and Co.,
of this city, a copy of which having been transmitted
by His Excellency the Governor-General of Canada to
Her Majesty's Secretary of State for the Colonies was
printed among other Parliamentary papers, although
it was not written with a view to publication. In
pubhshing this letter I feel bound to state that the
Province of Canada owes a deep debt of gratitude to
the eminent house to which it was addressed, and
equally so to Messrs. Glyn, Hallifax, Mills and Co.,
for the liberal manner in which it has been invariably
treated by both firms. The following is a copy of
my letter to Messrs. Barings : —

Inspector-General's Office,
Montreal, Canada, December 20th, 1848.

Gentlemen, — I am this day favoured with your lettsr
of the 1st instant, in which you inform me that you will
provide for the January dividends on the Canada Bonds,

payable at your office, in the assurance of your being
repaid the advance before 1st April next. I can assure
you that the Canadian Government feel deeply indebted
for this fresh proof of your anxiety to sustain the credit of
the Province. I have by this mail instructed Messrs.
Glyn, HalUfax, Mills & Co. to transfer to you £30,000 of
the Canada debentures, which were placed in their hands
last year for sale. A portion of these debentures bear 6
per cent, interest, and I should hope that the quotation of
prices given by you refers to the 5 per cents. I feel very
strongly that these debentures ought not to be sold under
par, and that it would be much more advantageous in
every way, for this Government to pay whatever rate of
interest may be required to command money, than to
increase the debt by making loans under par. Although,
therefore, I have directed that a portion of our debentures
should be placed in your hands, I rely that, unless it be
unavoidable, you will not sell the 6 per cents, under par,
and that you will advise me whether par can be obtained
for debentures bearing a higher rate of interest, with a
provision enabling the Canadian Government to pay them
off by giving reasonable notice.

I think the present a favourable opportunity of commu-
nicating to you the views of this Government on the subject
of our fiscal affairs generally. I gather from your letter,
that the Canadian Government declined in 1837 to con-
.itute your house the sole agents for the Province, and
that, since that time, you have considered Messrs. Glyn &
Co. to hold that position. It would, of course, be unpro-
fitable to enter at present into any discussion with regard
to the conduct of the Government of Upper Canada at the
time referred to ; but I have to repeat, that my own con-
viction has been, since I have taken a part in public aft'airs>

which has been since the union of the Provinces, that your
house and that of Messrs. Glyn & Co. occupied precisely
the same relative position towards the Government, and I
therefore conceived that, at a time of temporary embarrass-
ment, we were justified in making a similar application to
both houses. Your letter has confirmed me in an opinion,
formed very soon after my acceptance of office at the
beginning of the present year, which is, that it is indispen-
sably necessary that the Province of Canada should secure,
without loss of time, the services of an eminent house in
London, which should be its sole agent, and at whose
office all its dividends should be payable.

For such services the Province of Canada is able and
willing to pay, and they must be secured without loss of
time. Before asking from you any proposition on the
subject, it is necessary that I should notice some remarks
in your letter now before me. You state that the bonds
of Canada are looked on " much in the same hght as the
bonds of separate States of the United States of America;"
that " the stock of the Federal Government of the United
States is certainly more valued, and finds readily pur-
chasers on both sides the Atlantic ;" and, after stating that
"credit is only permanently maintained by the public
knowledge of ample powers, and constant regularity in
meeting all money engagements," you add, " the debt of
a colony always labours under some disadvantage in this
respect." I desire to ofi^er a few remarks on these passages
in your letter. When your house negotiated a loan for
Upper Canada some years ago at 5 per cent., that Province
was in a position precisely analogous to one of the separate
States of the Union: it had no means of collecting u
revenue from Customs, the ports of entry being in Lower
Canada ; and in the event of the works, for the construction

.«

of which the loan was raised, proving unproductive, there
were no means of paying the dividends unless by a resort
to direct taxation, — a measure not easily resorted to, and
which, at all events^, would have involved delay. The Pro-
vince of Canada occupies a widely different position, — her
means of paying the interest of her debt are most ample,
and are quite irrespective of the revenue from the works.
The interest on the public debt is about £170,000 sterling,
while the revenue is more than double that amount ; the
grants for educational and charitable institutions alone are
nearly j880,000 currency per annum. Canada then has
"ample powers'' of meeting her engagements; in fact,
precisely the same powers as the Federal Government of
the United States : both rai^e by duties on imports the
revenues which they require ; and if Canada wanted more»
there would be no difficulty in increasing the duties on
imports generally, w^ich are now, say, 20 per cent, lower
than the American average. But I admit that, besides
power, there must be the will to pay the engagements of a
Government. Has the Canadian Government or Legisla-
ture evinced any reluctance to meet its engagements?
"When your house was formerly under the necessity of
advancing money to meet the dividends, and of selling our
bonds at a discount to reimburse yourselves. Upper Canada
was in the position I have already adverted to, and was
unable to raise a revenue by Customs. One of the avowed
objects of Lord Sydenham in recommending the Union
was to enable the Province to meet its liabilities ; one of
the first acts of the United Parliament was to double the
duties on imports : since that time they have been further
raised, and our proposed new tariff will ensure a still fur-
ther increase of revenue. Here, then, is evidence of
the will to meet our engagements : and to which I may

state, and I do so with pride and satisfaction, that, amid
ail our political disputes, which have occasionally run high,
as they sometimes do in England, the members of our
Legislature, of all parties, have vied with one another in
affirming the necessity of maintaining the public credit at
all hazards.

The power and the will to meet our engagements exist ;
and, since the Union, you must admit that our " regu-
larity in meeting all money engagements'' cannot be
complained of. The unbounded credit of the British
Government arises from the determination always evinced
by Parliament to meet its engagements. The people of
Canada are British subjects as well as the people of Eng-
land : they have the same power and the same will to
meet their engagements ; and if they are ever in difficulty,
it arises from the fact, that British capitalists do not
choose to place the same confidence in their honour that
they do in that of the people of the United States, whose
bonds are saleable without difficulty, although, after pe-
rusing these remarks, I confidently anticipate that you
will admit that our means of meeting engagements are
equally good with theirs. The fact is, that our bonds are
not recommended as an investment, while those of the
United States are ; indeed, I have felt mortified to find
that the price of Canada bonds is never quoted in the list
of stocks, although those of each of the United States, as
well as of all other foreign governments, are kept con-
stantly before the pubUc.

I must now state, very briefly, the cause of our present
difficulties. Within the last three or four years, there has
been a surplus of revenue over expenditure of £400,000,
which, instead of being applied to the redemption of our
debt, has been invested in new works, on the success of

which, as a source of immense revenue, we have every
confidence: every effort and sacrifice must be made to
complete these works. Since the creation of our Sinking
Fund, we have saved from actual surplus of revenue half a
million currency, or one-eighth of our whole debt. But
until our great line of ship canals, unsurpassed probably
by any works of the kind in the world, are quite com-
pleted, we shall be hampered, unless we can go into the
money-market, like other governments, and obtain loans.
But in addition to the cause of embarrassment I have
referred to, we have had this year a very deficient revenue,
our imports being not more than two-thirds of the average.
In England, deficiencies of revenue often occur, and
would be just as embarrassing as ours are, but for the
facility of raising money by an issue of Exchequer Bills.
I have stated the cause of our embarrassments; and I
trust I have shown you that, although not the slightest
ground exists for uneasiness, although our revenue is most
ample to provide for all our wants, and for the extinction
of our debt at no distant period, we are suffering severely
from that want of credit in England which you have de-
scribed. Our want is now, and has been all along, an
active agent of high standing, able to maintain our secu-
rities in that credit to which they are entitled. A divided
agency is not worth the attention of either your house or
Messrs. Glyn's. Perhaps you would consider it equally
unworthy if undivided ; but one thing is to my mind clear,
and I shall repeat it: the Canadian Government must
obtain the services of an eminent house in London, and
for those services it is able and willing to pay. I must
state, in conclusion, that as I do not believe any house
would be so likely to advance our interests as yours, I
should be glad to be favoured with your views on the

Tip

;;ii

yy\

■ubject as early as possible. I have no doubt that our
mutual friend, Mr. Dunn, to whom I shall write by this
mail, will be able to give you any further information you
may require. With regard to Messrs. Glyn and Co., whose
services to the Canadian Government it will always be
ready to acknowledge, I need only say, that the opinion
as to the expediency of having but one agent arises from
no dissatisfaction with them, but from a conviction that a
small account is not worth dividing, and that our interests
will be promoted by such an arrangement as the one
proposed.

I have, &c.,
(Signed) F. HINCKS,

Inspector-General.

Messrs. Barinff, Brothers and Co.,
London,

Since the date of the above letter, the Provincial
Parliament has sanctioned two measures which I had
the honour of submitting for its consideration— one "for
the better management of the public debt, accounts,
revenue, and property;" the other, "to amend the
laws relative to duties on customs." By the former
Act the Government is armed with increased power
with regard to the management of the debt, and pro-
vision is made for an efficient Sinking Fund, to which
I have already referred. By the latter, increased
duties are imposed strictly for revenue purposes, and
amply sufficient to meet the interest on the debt, the
civil list, and all other demands which the exigencies
of the public service may require to be made. I have.

I trust, shown conclusively that Canada |)ossesses
ample resources to enable her Government to make
good all its engagements. I can affirm with confi-
dence that the great mass of the Canadian people are
thoroughly loyal to their Sovereign, and deeply imbued
with the feeling that at all hazards faith must be kept
with the public creditor. It is much to be regretted
that an opinion prevails rather extensively among cer-
tain classes of the people of England, that separation
between the colonies and the mother country is likely
to ensue at no distant period, and that the connexion
is not profitable to either. Such views are, as I shall
endeavour to prove, very erroneous ; but I affirm that
even were a result which I should much deprecate, to
ensue, the public creditor need be under no apprehen-
sion. It cannot be doubted that one of the conditions
attached to any acknowledgment of independence on
the part of Great Britain, would be the recognition of
the claims of the public creditors. No apprehension,
then, ought to exist with regard to the effect of a revo-
lution on the value of the securities. I maintain, how-
ever, that such an event is as improbable in Canada as
in any settled government in the world. The senti-
ment which animates the public mind in Canada was
well expressed in a late debate by the President of
the Board of Trade, when that Right Hon. Gentleman
said, that " He placed a high value on the connexion
subsisting between this country and her Colonies ; but
he did not believe it to be a mere connexion of interest
in the narrow sense of that word, but one of honom*,

duty, and affection ; a connexion that neither party liad
any right, on light and insufficient grounds, to dis-
solve." But, setting aside all sentiments of loyalty to
the Crown, attachment to the institutions handed down
to us by our ancestors, pride, in forming a constituent
portion of the greatest empire in the world, it seems to
me clear that the connexion is mutually advantageous
to both parties ; and if I should be able to establish
this position satisfactorily, I may hope that these
remarks will have a beneficial effect. I put entuely
on one side all advantages to be derived from protec-
tion. Without entering into any discussion of the
subject, I shall content myself with stating my belief
that the connexion can only be maintained on the
principle of Free Trade. What then are the advan-
tages which Canada will derive from the connexion ?
I answer, the control of her own revenue. The con-
sequence of annexation to the United States would be,
that the entire customs and land revenue would be
placed at the disposal of the Federal Government, and
would be applied to the maintenance of the Array and
Navy, and the diplomatic relations of the United States,
while the Canadian people would be taxed directly for
all local purposes. As I am treating the subject as a
matter of pecuniary interest, I shall not dwell on the
evils that would result from being connected with a
country where slavery exists in all its horrors, and
where it will in all probability continue to exist until
the question is settled hy revolution. Many other
arguments might be adduced to prove that annexa-

tion would be injurious to Canada, and I know of
none in favour of such a measure. The Canadians
enjoy all the advantages of self-government, with the
additional one of being protected free of cost by the
greatest nation in the world. Under the enlightened
administration of the Noble Earl at the head of the
Colonial department, which has been in no way more
clearly exhibited than in his selection of Governors, the
people of Canada, Nova Scotia, and New Brunswick,
have been loyal and contented, while Europe has been
convulsed with revolutions. The advantages to the
mother country from the connexion are equally obvious.
It is an undisputed fact, that the commercial poUcy of
the United States is hostile to EngUsh interests. Let
the North American provinces be annexed, and all
ingress by the St. Jiawrence be prevented, and the
American protectionist party will be able to carry that
policy into practical operation, which they can never
do, so long as the Canadian frontier is in the posses-
sion of a foreign power. It is the fashion to despise
the Canadian trade because it is insignificant in com-
parison with that of the United States ; but it is no-
torious that in proportion to population the Canadians
consume British manufactures to a much greater ex-
tent than the people of the United States. Canada
is rapidly increasing both in wealth and population,
as will be seen by reference to Appendix C. The
emigrants to the North American Provinces are con-
smnerp, of British manufactures, and attached by mo-
tives of various kinds to the mother country. Those

who settle in the United States are, in every respect,
aliens, and are treated as such. With -3gard to the
expense of the Colonies I would say a few words.
The entire civil expenditure, including the salary of
the Governor, is borne by the Province. It may be
doubted whether, if the Colonies were abandoned,
England would reduce her military expenditure by the
cost of a single regi uent ; if not, it can be of little
importance where the troops are stationed. This sub-
ject, however, I shall not attempt to discuss. Believ-
ing, as I do, that the subsisting connexion between
the North American Provinces and the mother coun-
try is mutually advantageous, I cannot believe that it
will be dissolved in order to save the expense of a
few regiments of the line. It cannot be denied that
the late riots were calculated to create some alarm
among those interested in the Province. There has
been great political excitement, which, I fear, has not
yet entirely subsided. No unanimity, however, exists
among the discontented parties. The addresseo of
the British League have been hitherto characterised
by expressions of loyalty ; and but for such expres-
sions they would have had no influence. If there be
in the ranks of the party which has lately committed
excesses, which are very generally discountenanced
and disavowed, any individuals who have as an ul-
terior object in view, the severance of British con-
nexion, an avowal of that object will ensure their com-
plete discomfiture.

The leaders of the Opposition have on all occasions

professed the most devoted loyalty to their Sovereign,
and I should be sorry to attribute to them any senti-
ments of an opposite character. There is no just
cause, therefore, to apprehend that any serious demand
for annexation will be made, and, if it were, it would
be discountenanced by the great mass of the people.
The object of this publication being solely to place the
financial affairs of the Province in a proper light, and
to correct, if possible, prevalent cxTors which have
affected the public credit, I shall abstain from all
political discussion. I believe that, in the greater part
of the foregoing remarks, the majority of those who
oppose the Administration of which I have the honour
of being a member would concur. I have thought it
better not to enter into detail on the subject of the
pecuniary wants of the Canadian Government, as
verbal explanations on that head will be much more
satisfactory to all parties.

It will not, I trust, be considered irrelevant to the
subject of this pamphlet, if I add a few remarks on
the position of the most important of the projected
railroads in Canada, as well as on that between
Quebec and Halifax, Nova Scotia. With regard to
the feasibility of the latter work, and its importance
in every point of view, I beg to refer those interested
in the question to the able Report of Major Robinson,
of the Royal Engineers, who conducted the Survey
under instructions from Her Majesty's Government.
I shall confine my remarks as much as possible to the
financial question. The work referred to has always

« !-

been looked upon in the North American Provinces as
a national one, which could only be satisfactorily
undertaken by the Imperial Government, either di-
rectly or through the instrumentality of a Company.

I assume that a strong feeling prevails among the
English public iii favour of a large and feasible scheme
of colonization. If the assumption be correct, and
that a good scheme can be presented, I should hope
that Imperial assistance would not be withheld. Major
Robinson states, in his Report, " Of the climate, soil
and capabilities of New Brunswick, it is impossible to
speak too highly:" again — "For any great plan of
emigration or colonization there is not another British
colony which presents such a favourable field for the
trial as New Brunswick." I might multiply extracts
of a similar purport. To colonize successfully, it is
most desirable that there should be a market for
labour at the place selected for the experiment. Such
market would be afforded by the Quebec and Halifax
Railroad. Canada and New Brunswick propose to
give the land, to the extent of ten miles in depth, on
each side of the line where it passes through the
public domain, and also to obtain the right of way
from the proprietors of private property. The three
Provinces have likewise voted £20,000 sterling each,
or ^80,000 sterling per annum, towards making good
the interest on the expenditure. I have not met with
a single person in England who is at all conversant
with the subject, who does not admit that the three
Provinces have done as much as can reasonably be

expected from them. The Imperial authorities have
now to determine whether they will assist in such a
great undertaking.

It cannot be expected that the people of this coun-
try should tax themselves to construct a work for the
benefit of the Colonies, and this is the hght in which
the Quebec and Halifax luiilroad is viewed by many.
But if a large tract of land, which the railroad will
very speedily render accessible from the sea at all
seasons, and which is little over a fortnight's sail from
the Irish coast, should be placed entirely at the dis-
posal of Government, an extensive immigration would
take place, and the land might be made liable for all
the expense of settlement to one class of emigrants, or
sold at remunerative prices to another. The people
of England are, in my opinion, deeply interested in
the construction of the Quebec and Halifax Railroad ;
and it may therefore be hoped that ere long the sub-
ject will engage a very large share of public attention.

It will be observed that I have treated this ques-
tion on the assumption that the railroad w^^' be un-
productive as a mercantile speculation. I ought to
add, that Major Robinson, who has evidently given the
entire subject his best consideration, is of opinion,
for reasons which he has stated at great length in his
Report, that such will not be the case. There is suf-
ficient doubt, however, to prevent the work being
undertaken by any private Company, and the ques-
tion remains for consideration, whether the importance
of carrying into effect a good scheme of colonization

c 2

< 91
If

in the only Province where abundance of fertile land
is found in a situation accessible at verj' small cost,
and at all seasons of the year, will induce the Impe-
rial authorities to co-operate with Canada, Nova
Scotia, and New Brunswick, in promoting the con-
struction of this great national work.

With regard to the Montreal and Portland, and
the Great Western Railroads, I would simply observe
that the Companies incorporated for the construction
of these lines are entitled by an Act of last session to
the guarantee of the Province for the interest at 6 per
cent, on Debentures issued by them, to enable them
to complete their roads. This guarantee, however, can-
not be given until each Company shall have completed
one half of its entire road. I may observe, that when
these guarantees were given, the Legislature, in amend-
ing the Customs' Act, gave authority to the Governor-
General to add five per cent, to the Customs' duties
whenever he should deem it necessary to do so. The
guarantee, therefore, is not one of mere parchment,
but the ways and means have been provided before-
hand to enable the Government to fu ^Sl its obligations.

It would be inconsistent with my present object to
dwell at any length on the importance of the Portland
and Great Western Railroads. I thought it proper to
state what the Province had done in aid of the com-
pletion of those works, conceiving that I could furpish
no stronger proof of the estimation in which they are
held. It is proper to add, that I am unconnected with
any of the Canadian Railway Companies, and that I

have neither been authorised nor requested to say any-
thing in their behalf.

My object has been to put the English public in
possession of the views of the Canadian Government
and Legislature, which were embodied in a Bill which I
have no doubt has become law, as by my last advices
it had passed through both Houses of the Legislature
with the greatest unanimity.

'it

'if

APPENDIX.

^k-

] ;

■ :■

1 -■

statement, exhibiting the Financial Position of the Province of
Canada on the 31st January 1849.

Currency.

£,. 8. d.

1,825,000

1,239,023 7 8

645,721 9 9

87,295

125,298 13 1

207,874 16 8i

354,100 10 lOi

508,592 14 4

162,200 10 11

53,533 6 8

4,281,074 6 10 5,208,640 8 llf
• The figures are referred to in the preceding pages.

LIABILITIES. Sterling.

£. s. d.

Imperial Guaranteed KgQQQQQ q q
Loan (1)* . • J

Debentures, principaH

and interest, payable ^1,018,375 7 7
in London (2) J

Ditto payable in Ca- 1 530729 19 10
nada (3) . .J

Ditto in small Deben- 1 n^ 749 g 4
tures (4) . . J '

Unfunded Debt (5) . 102,985 3 11

Balance at credit of the"^

Consolidated Keve- > 170,855 19 9

nue Pund (6) .J

Redemption of Debt (7) 291,041 10 10

Special Punds managed "1 41 g 021 8 3
by the Province (8) . j '

Debentures issued by"j

way of loan on seen- I 3 g^g ^^ ^
nty of specific taxes j •

or mortgage (9) .J

Sinking Fund (10) . 44,000

i ■

■'M

ASSETS.

Sterling.

9. cf.

ie-1

ap- >3,703,

781 9 4

62,267 11 11

Public works as per de-
tailed statement ap-
pended, marked B.

Debentures held on ac-"]

count of special funds > 337,709 15
(11) J

Cash in hand, and ba-
lances due 1
vince (12)

Liabilities to the Pro-^

vince for Debentiu*es I loooie ia a
1 J . > 133,315 10 4

loaned as per contra f '

(13) . J

Investment by Bank of
England in the
Funds, on account of
Sinking Fund, as per
contra (14)

d, and ba-"1
I to the Pro- >

I • J

44,000

Currency.

£. s. d.

4,506,267 9 0^

410,880 4 2|

75,758 18 2^

162,200 10 11

53,533 6 8

£4,2»1,074 6 10 £5,208,640 8 llf

;" 111

Detailed Statement of the Cost of Public Works forming tlie aggre-
gate amount charged in Statement A.

St. Lawrence Canals
Welland Canal
Chambly Canal

Improvement of River Richelieu
Lake St. Peter
Burlington Bay Canal .
Ottawa Works
Harbours and Lighthouses
Improvement of the Trent
Roads and Bridges, Upper Canada
Ditto Lower Canada

Provincial Penitentiary
Miscellaneous Works
Losses by Public Works and otherwise

}

&. a. d.

(1) 1,442,314 1 8
. 1,394,022 8 8

(2) 86,409 7 10

(8) 74,500

48,376 13 7

(4) 81,979 19 6

(6) 266,504 17 10

(6) 135,445 2 10

(7) 530,384 4 4

(7) 268,326 11 11

(8) 34.207 15 I
31,507 11 2

(10) 112,288 14 7

Halifax Currency £4,606,267 9
SterUng at 24a. 4rf. £3.703.711 9 4

(1) These Canals are the Lachine, Beauharnois, Cornwall, and
three smaller ones. The works have been constructed in the
most substantial manner, and are unequalled on the American con-
tinent.

(2) The Chambly Canal connects the St. Lawrence and Richelieu
with Lake Champlain. Business is increasing rapidly through it ;
but it is not of sufficient magnitude, and at present it would be
imprudent for the Province to undertake the enlargement or con-
struction of another on the scale of the St. Lawrence canal.

(3) This money has been expended in making a new channel
through Lake St. Peter. There has been great difference of opi-
nion as to the propriety of deepening the old channel or forming a
new one, and the works are at present suspended.

(4) The slides on the Ottawa have been of inmiense advantage
to the lumber trade, and yield a fair return for the capital in-
vested.

(5) Tolls are charged on all the Government Harbours suffi-
cient to meet the interest of the expenditure. Such works are of
the utmost importance, affording, as they do, facilities for the export
of the produce of the country. They are principally on the shores
of Lakes Erie and Ontario.

(6) The improvements on the Trent are principally slides to faci-
litate the operations of the lumberers in the county of Peterboro*.

(7) These are macadamised or plank roads on which tolls are
exacted, and toll bridges. They have been of the greatest advan-
tage to the people ; and though at first tolls were strongly objected
to, the people now pay them most cheerfidly, and are anxious for
the continuation of such works. The want of capital has wholly
put a stop to them.

(8) This amount is very far short of the actual cost of the Peni-
tentiary, the remainder having been defrayed out of the current
revenue.

(10) This account is charged with various kinds of losses, and
is in fact analogous to the profit and loss account of a merchant.
It includes the amount lost by the failure of a house in London
some years ago, and losses by exchange and otherwise.

For statement of Bevenue from the Public Works, see Appen-
dix D.

i 1

Extracts from the "Appendix to First Beport of the Board of Regis-
tration and Statistics in Canada. Members of the Board: —
Hon. F. Hincks, Inspector-General ; Hon. L. M. Viger, Receiver-
General; Hon. James Leslie, Secretary of the Province. W. C.
Grofton, Esq., Secretary."

POPULATIOX OF LOWER CANADA.

1825 . . 423,630
1827 . . 471,876
1881 . , 511,920
1844 . . 690,782
1848 estimate . 766,000

•

POPULATION OP UPPEE CANADA.

1824 . . . 151,097

1832 . . 261.060

1884 . . 320,693

1836 . . 372,502

1842 . . 486,055

1848 . 723,392

80 per cent, of the whole population derive their subsistence directly

from agriculture.

AGKES OF CULTIVATED LAND IN UPPER CANADA.

1826 . . 535,212

f
'f

1830
1835
1840
1845
1848

775,014
1.208,608
1,710,000
2,311.238
2,673,820

HOUSES OF ALL KINDS.

1825

8,876

1830

12,082

1835

18,488

1840

25,857

1845

37,214

1848

42,937

GRIST MILLS.

1825

1830

273

1835

352

1840

420

1845

478

1847

492

1848

527,

SAW MILLS.

1825

394

1830

555

1835

753

1840

963

1845

1,272

1847

1,489

CARBIAOES KEPT FOR PLEASURE.

1825

587

1830

986

1835

1,495

1840

1,863

1845

3,800

1847

4,685

MERCHANTS SHOPS.

1825

456

1830

748

1835

982

1840

1,123

1845

1,636

1848

1,945

VALUE OF '.odESSED PROPERTY ACCORDING TO ASSESSMENT LAWS.

1825 . , £2,256,874

1830
1835
1840
1845
1848

2,929,269
3,880,994
5,607,426
7,778,917
8,567,001

LOCAL DIRECT TAX«<:s.

1825

J10,235

1830

13,335

1835

22,464

1840

37,465

1846

76,291

1848

86,058

PUBLIC BUILDINGS, UPPER CANADA.

Tovm Halls . . 68

Churches . , 895

Colleges and High Schools . 89

Commou Schools . . 2,464

PRODUCE

Bushels of Wheat

1842

8,221,991

1848

7,558,773

Oats

1849

4,788,167

1848

7,055,730

Rye

18-J.9.

292,970

1848

446,293

Peas

1842

1,193,551

1848

1,753.846

Maize

1842

691,359

1S48

1,137,555

Barley

1843

1,031,35E

1848

615,727

Potatoes .

1842

8,080,397

1848

4,751,331
lbs.

Wool

1842

1,302,51C

1849

2,339,756
Head.

!Neat Cattle

1842

504,963

1848

565,845

Horses

1842

113,657

1848

151,389

Sheep

184?

575,730

1848

833,807

Hogs

1842

394,366

1848

484,241

NO COMPAEATIVE RETURNS OP THE FOLLOWING.

1848.

Flax

Butter

Cheese

lbs.
41,590

3,380,406

668,337

Owing to causes which I need not explain, the last census was not taken
for Lower Canada. The statistics given, therefore, are for Upper Canada
aloiuc.

statement, exhibiting the Revenue from Public Works in successive

years.

8. d.

1842

24,232

13 9

1843

34,604

13 3i

1844

44,259

14 8i

1845

41,039

9 9i

1846

61,486

14 11

1847

83,335

s; 1

Eiken
nada

Estimated Revenue and Expenditure of Canada for the current year

1849.

7(1

1 '"

il'il
liiii

■

UEVENUE.

£.

Customs

. 450,000

Public Works .

50,000

Excise

. 30,000

Territorial

20,000

Other sources .

24,640

£574,640

EXPENDITURE

•

£,

«.

Interest on debt

. 200,000

Sinking Fund , ,

. 75,000

Civil List

. 73,884

Other charges, (including Educational

Grants,

•

about £70,000 ; Agriculture £10,000 ;

Charita-

ble Institutions £15,000)

. 216,510

£565,403

Abridged from the detailed Estimate submitted to Parliament.

¥. HINCKS,

Inspector-General.

Richuil Kiudfer, Printer, Orvau Arboar Court, Uld ilaliejr.