1 fl0U$^ of Commons Bi^batts FIFTH SESSION-SEVENTH PARLIAMENT SPEECH OF THOMAS BAIIN^, M.R ON THE BUDGET OTTAWA, TUESDAY, 21st MAY, 1895. :*•:■': . . > . Mr. BAIN (Wentworth). In rising to dis- cuss the issues ttiat are presented to the House this afternoon, the question of how we shall raise the necessary money for the purpose of administering the affairs of this country for the ensuing year, and the pro- position of the hon. member for South Ox- ford, as opposed to that of the Minister of Finance, I have only to say that I am dis- tinctly in favour of the proposition of the hon. member for South Oxford. In that re- spect I differ somewhat from the hon. gen- tleman from East Grey (Mr. Sproule), who has just taken his seat. I differ from him in several other matters, but I am able to agree with him when he lays a tribute of respect upon the grave of our departed Premier ; because, I hold that the members of the Opposition respect the worth of that hon. gentleman, and realize the loss that Canada has sustained in his death, just as deeply as the hon. member for Grey ever could. While I congratulate the Minister of Finance upon his promotion to the leader- ship of this House, I have also to express my regret that, for the first time in my par- liamentary experience we have been depriv- ed of the presence of the actual leader in our midst, and I have found these double duties devolving upon the Minister of Fi- nance. Now, I believe that, however much that hon. gentleman may display his ability in hancfling the finances of this country, it is noL in the interest of his political party, nor of this country, that such a combina- tion should exist. We now find the Premier sitting in another Chamber which is in no- wise directly responsible to the people, and entirely independent of them in any form, and he is accompanied by the hon. gentle- man who controls the one department that, perhaps, involves greater interests than all the other departments combined. I refer to the Department of Agricrnure. When we find the lawyer who is tne head of that branch of our service, is also located in the Senate, away from any contact with public sentiment, away from associations with the people's representatives, I think it will be found, under these circumstances, that the public interest will distinctly suffer. When I heard the hon. gentleman who has just taken his seat, deliver his singular utter- ance with respect to the people's choice of a man to represent the county of Antigonish in succession to the late Premier, it occur- red to me that no more scathing criticism could be administered to his political party. Granted tiiat half of what he said with r**- spect to that hon. gentleman was true, which I do not grant, it merely shows that after the Minister of Justice went down into the county of Antigonish, and after they had put a family relative of the deceased Premier into the field to secure for him the sym- pathy and support of tho circumstances under which the late Premier passed away, the people of Antigonish, in face of the policy advocated by that hon. geatleman, refused to elect their man, and sent my hon. frieud here to support the Liberal party. And yet my hen. friend from Grey comes down, and he, of all men in this House, says : " How have the mighty fallen ! " It Is words, only words. Before proceeding to criticise the mode in which the Minister of Finance proposes to raise money for the next year, I want to say a few words about the position my hou. friend assumes to our party on this side of the House. He told us a very amusing story about a man out in the Western States, who, astride of a very bad horse, was riding around the country in a very in- deiinite manner, and he thought it would be a long time before he would overtake the Lord in that way. It occurred to me that that incident might have been applied a good deal nearer home, and not so very long ago. I remember when there was an enormous activity in political circles ; I re- member when this Government was hasten- ing the preparation of the voters' lists of this Dominion, and circulars were sent out to the revising otticers to get their worlc done at the appointed time. An extra staff of prin- ters were employed in the department for . the purpose of hastening on the preparation of these voters' lists, and have them all ready. For what purpose ? Presumably for an appeal to the people. Every other kind of business was suspended, but sud- denly there came an Order in Council to call us together here in session ; and the Sec- retary of State has presented a Bill *o the House to make these voters' lists good and valid for the current j'ear, so that we need not take the trouble to revise them during this summer. Was all that gone through to enable the Minister to introduce this Bill ? Did it not look very like as if hon. gen- tlemen opposite were mounted on that very scaly horse, and were meandering about in such fashion that tbey did not know where they were going ? But, finally, instead of going to the people, they suddenly made up their mind it was not safe to trust the people, tuat they had better face the peo- ple's representatives once more in session. Now, Sir, I want to draAV attention to one or two statements that were made by the Controller of Customs to his address to the House the other day. I do it because na- turally the utterances of an hon. gentleman occupying his position, who controls the Customs, the one large revenue-pajing branch, are likely to attract attention and receive consideraton ai the liands of the people. What do v;e find that hon. gentle- man said with respect to the expenditure of the Mackenzie Government, as com- pared with the expenditure on public affairs to-day V I read from the otticial report : The total expenditure of 1872-73 was $19,174,000. When the Reform party came into power in 1874, that expenditure jumped up to |24,448,000, or an increase of $5,318,000 in one year, in spite of their professions of economy. Then the hon. gentleman goes on to moral- ize and prophesy. He said : And I think it would require no prophet to assure us that, if they should come into power to-morrow, we would find history repeating Itself. Turning to the Public Accounts issued for the fiscal year ended 30th June. 1894— what do I find ? I find that the quota- tion made by tlie hon. gentleman does not quite agree with the official statement in the Public Accounts. The hon. gentleman said the expenOiture in 1872-73 was so and so. So it was. But it so happened that the whole of the year 1872-73 was passed be- fore the Mackenzie Government came into powei, and four months of 1873-74, and that the Estimates for 1873-74 were passed by the friends of hon. gentlemen opposite. Sir Leonard Tilley was Finance Minister, and one-third of the year had passed. The Controller of Customs concealed the fact that between those two periods we had added ai: other province to confederation, and that the whole of the expenditure for Prince Ed- ward Island was added to the expenses of the country. I am not surprised that the hon. the Controller has got himself into trouble in this House. I am not surprised that when the Minister of Railways and Canals was confronted with his campaign speeches during last fall, he found himself compelled to repudiate not only the state- ments o? gentlemen who heard him make the statements attributed to him, but also the statements of his own official repoiter. Let me draw the attention of the House to one more statement : That taking the whole of 1873-74, the Esti- mates for which were furnished by hon. gentlemen opposite, and in regard to which the preceding Government had expended four months of the revenue out of the twelve before Mr. Mackenzie came into office, during that year the total expenditure under the Mackenzie Government was only $23,316,000, and when that Government went out in 1878, after administering public af- fairs during five years, the expenditui-e had only risen to $23,503,000. The last year's expenditure of hon. gentlemen opposite has risen to the enormous sum of $37.585.0<)<.>. and yet the Controller of Customs has the cheek to come and tell this House about liis economy as compared with the Adminis- tration of the Mackenzie Government. The debt statements are another example. We assumed in 1873 along with the ad- ministration of Prince Edward Island, a debt of $4,700,000, which came into the ac- counts for the first time during the first year of Mr. Mackenzie's Government. Yet the Ooncroller of Customs wa«J not fair enought to make that statement. But let me take another method with which hon. gentlemen oppo^site deal with the finances. "SV'e have heard considerable to- day from the hon. member for Grey (Mr. Sproule) with respect to certain expenditures in Quebec, and we heard a beautiful fairy tale about ?oO,(XK) which was being coa- 1 tributed for some Liberal annexation fund j from the American side. I thinli the hon. | gentleman should have listened to the state- j ments of the Finance Minister the other i ■day. when he told the House that the credit of * the American Union was so low that while we could borrow money in England at ic per cent, the United States had to pay 3% per cent; and yet the hon. member for Grev makes himself believe that they would spend $.50,000 for the purpose of annexing €anada to the United States. ^Ir. SPROULE. That is why they are so -anxious to get us annexed. Mr. BAIN (Wentworth). I admire the abiding faith of the hon. member for East Grev. If he can accept that, it is clear that his 'faith could remove mountains if neces- sary to make an impression in a political campaign. But I come back for a moment to the statement made by the Controller of Customs with respect to provincial expendi- ture. He gave tho House a table showing increased expei^diture of various provinces, and then he held up his hand in horror, and said. Look how these Grit Governments have increased the expeuf'.i lures in the vari- ous provinces of the Dominion. The $9,132,- 000 it took in 1894 to collect the revenue of the Dominion is the best answer to that statement ; but he did not go so far as my respected friend, the member for King's (Mr. Macdonald), who told the House that Ontario had a debt of about $1,500,000. Mr. MONTAGUE. Has it any debts V Mr. CHARLTON. Do you say it has ? Mr. IVES. They have been selling secu- rities. Mr. MONTAGUE. Hr,s it any debts ? Mr. BAIN (Wentworth). Yesterday there was fiu election in North Brant to fill a vacancy, and so low had the political strength of the party with which the hon. gentleman is allied sunk, that they did not put a man in the field to contest the elec- tion, and allowed a supporter of Sir Oliver Mowat to be elected by acclamation. Mr. MONTAGUE. I think I may rise and say that that answer is not only disingen- uous, but very unfair. Mr. SPEAKER. Order. - '- Mr. MONTAGUE. The hon. gentleman gave way. Mr. SPEAKER. The dignity of Parlia- ment is not preserved by these interrup- tions. Mr. MONTAGUE. I trust the same ruling will be applied Mr. S »EAKER. Order. Mr. BAIN (Wentwoith>. The Secretary of State must admit that I am not guilty of interrupting hon. members across the tloor of the House. What are the facts with re- spect to provincial debts— how does it tally with the political record of Ontario for the last 22 years ? Sir Oliver MoTvat has been Premier and administered the affairs of the province for 22 years. What is the strength of the Conservative party in that province to-day compared with the strength in its early history ? Take the last session of the legislature, and on two occasions they succeeded on mustering, on a party vote, 23 and 25 respectively, out of a division list of G2 and 66 against them. Mr. IVES. Let me ask the hon. gentle- man : Did the proportion represent the popu- lar vote of Ontario V How about the geri'j'- mander ? Mr. BAIN (Wentworth). I shall have a word to say about the gerrymander, if the hon. member for Texas will wait till a lictle later. Mr. SPEAKER. Order, order. Mr. BAIN (Wentworth). Has any one ever seen the Premier of Ontario go to Lon- don to borrow a dollar V Has there ever been a prospectus of the province of Ontario pre- sented on the markets of the world to bor- row money, as the Finance Minister of this Dominion has been doing at intervals of two years in succession lately ?— and he will have to go there again before two years are over. That is the best answer. There is no province in the world of this broad Donunion that can present so fair a record in that respect as the province of Ontario. Let me presfit to hon. gentlemen opposite two short extracts from the two last budget speeches made by the Provin- cial Treasurer of Ontario. I presume, that no gentleman here will deny that ihe Provincial Treasurer knows about the affairs of that province, probably quite as well as the Controller of Customs here or the member for King's. P.E.I., (Mr. ^Macdonald). The Hon. Mr. Harcourt says in his budget speech of 1894 : Since confederation up to the close of 1893, our total grants to railways amount to $5,959,000. The present value of our annuities outstanding Is $1,319,775, and at this very hour we have at our credit in the banks hard cash to the amount of $1,550,000. That is the province that these gentlemen tell us is in debt. Mr. INGRAM. How did they get it ? Mr. BAIN (Wentworth). They did not get it by going over to England and borrowing money as the Finance Minister whom my hon. friends support has been in the habit of doing, at intervals of every two years. Here is a quotation from the budget speech of the Provincial Treasurer of Ontario, de- livered on the 28th Febriiarj% this year, and I will read it for the benefit of hon. gentle- men opposite : All tcld, deducting present liabilities from our schedule of assets, we had at the end of last year a comfortable surplus of $5,269,000. That is the record of the province of Onta- rio. That is the record of twenty-two years of Liberal Administration under Sir Oliver Mowat ; and where to-day is the political party that opposed him in that province ? I have not a word of disrespect to say to my Conservative friends in Ontario, but I point to this : That after a prolonged siege, ad- vancing the interests of that party, their last leader— and he was a gentleman of irre- proachable personal character, and a firsv class lawyer— retired on the Bench. He was succeeded by another gentleman at the last session of Parliament which met in Feb- ruary last, and I see it stated in the papers of the day that that gentleman is now anx- ious to be relieved from the cares of this little fragment of a political party up in the province of Ontario. Is not that the best evidence that the people of Ontario are satisfied that the Administration of Sir Oliver Mowat and his Liberal friends has been in the interest of the province V Just about the time we assembled for the opening of Parliament, there was an elec- tion in the county of Haldimand. There was a revolt in the Orange order in Canada of which the Controller of Customs As the Grand Master. There was som" trouble in the family because there was a section who were in open re- volt and put a candidate in the field against the present Secretarj- of State. Where was the Grand Master of that organization ? In that hour of trial for his friends and for the asf.ociation of which he was the presiding ofAcer, where was he ? Was he on the field of battle to counsel and guide and advise those gentlemen who had given him an oftioe of high trust, and made him for the time being their commander-in-chief ? No, Sir. he tells us himself, that of all places on this earth, he was away down at Washing- ton. I do not know whether he made that trip in the Government car " Jamaica," that is said now to be gone to California with another ex-member of the Cabinet, or not ; but at all events the Controller of Customs tells us, that he was down in ¥^ashington. If a Grit goes down there, there is trouble at once ; he is declared to be plotting for the ruin of his country, but it appears that when the Controller of Customs goes there he is not open to that charge. Well, Sir, I want to draw attention to the statement made by the Minister of Finance respecting the United States loan. After telling us that he had placed his Canadian loan on the market at such favourable terms, that after deducting all the costs and expenses, and all the other charges in connection with the loan over in London, he placed it at 8% pv?r cent. Then be goes on to say : I A short time after that the United States put an issue of bonds upon the market, and the rate of interest which those bear and which the United States have to pay, is within a fraction, in fact I think it is absolutely, 3% per cent, while the Canadian loan went on the British market at 3% per cent. Subsequent to that we had a little discussion with the Controller of Customs over the same question, and he confirmed the statement that our lo.an was made at the net value of 3%, the loan made by the United States bearing 4 per cent interest on the 30 years coin bonds for which $65,000,000 was ob- taiii4?d. Now, whatever the hon. gentleman (Mr. Wallace) went down to Washington for, he certninly did not secure much infor- mation about that loan. Sir, what were the facts ? Twice in 1894 the Secretary of the Treasury issued bonds, but in November, at that particular period referred to by both the Finance Minister and the Controller of Customs, those 30-year old 4 per cent bonds were issued. The bonds that were placed on the market then, were bonds that ran for only a little over nine years, that bore 5 per cent interest on the face, and were sold for gold at a rate that netted a little under 3 per cent to the banks that pur- chased them, and the loan of February was selling then on the market currently, paying 2% per cent to purchasers. What led to the diiliculti3S ? It was simply this : That in the United States Congress there was a sec- tion of members who were determined to make the payments of the United States silver equivalent to gold, at the rate of 15^2 to 1, when that coin on the market was only worth 33 to 1. The gold was flowing out of the United States treasury as rapidly as it came in until on the 28th of January, when the President sent his message to Con- gress, there was not enough of gold in the treasury available for three days' draft at the rate at which it had been gc:'ng out of the treasury for the ten days previous. It was becoming a crisis in the United States. A contract was then made, after a great deal of negotiation, with not only the New York bankers! but also the Rothschilds of London, for the delivery of 3,500.000 ounces of standard gold coin of the United States, at the cost of the parties tendering, to the United States Treasury. It is true, those bonds were thirty j'ears 4 per cent bonds, and they were sold to the bankers to j-ield 3% per cent, because the bankers took the risk of not being able to prevent the draft on the treasury, and they were bound to import half the gold required. Here is an important factor in that transaction which both hon. gentlemen omitted to men- tion. Why did they not tell us that the pro- position stood upen for ten days, whic}i was made to Congress by these very same bank- ers, that instead of leaving the word *' coin " in the contract, as it was gold they were supplying, they would take a 3 per c?Qt gold bond at par in place of those very bonds ? What did the New York "Tribune" of the 10th of February say about the refusal of Congress to endorse that proposition when it was laid before them by President Cleve- land ? It said this : . The President has made the necessary pro- posals to banks, but most judiciously has left ten days' time in which Congress, if it has the need- ful wisdom, can save the country $14,000,000 by passing; a proper Bond Bill. Pass some Bill with the proviso that the Secretary of the Trea- sury shall contract to pay the same kind of money that the Government asks from lenders. If it wants to borrow silver, let it pay silver. It it wants to borrow gold, let it be honourable enough, and also shrewd enough, to pay gold. Why net authorize the payment of the same kind of money that the Government actually borrows, with 3 per cent interest ? Nothing but blind ani stupid partisanship, it must be admitted, pre- vents this. And yet, for the purpose of making the people of Canada believe that our credit was so much better than that of the United States, the Finance Minister was either mis- led by those who made up that statement, or he suppressed what was essential in a fair statement of the facts to the public. Sir, I have as much attachment to my country as the Finance Minister or any one else ; I have lived in the riding I represent as long as I can remember ; the whole of mj^ interests are in this country ; I take no back sear to any man in this House for attachment to my country and its institutions ; but I have not seen the day when I would stoop so low as to misrepresent a neighbour for the purpose of advancing the interests of my own coun- try. Hon. gentlemen opposite talked to us very freely about railway transactions in which the Liberal party have figured dis- creditably in the province of Quebec. I have nothing to do with the local financial affairs of the province of Quebec ; but I want to remind the House that the gentlemen who shout so loudly about that transaction took the Hon. Mr. Mercier into court and endea- voured to establish the charges which they made against him so freely, and they sig- nally failed. Mr. FERGUSON (Leeds and Grenville). The grand jury gave the verdict, that is, the people, Mr. BAIN (Wentworth). Yes, we appealed to the people of Antigonish the other day, and we saw the result; Now. I wish to draw the attention of the House ^or a few moments to a case that was before the courts of Montreal only a few days ago, and I will quote from "the Montreal " Gazette " of the 14th of May,, 1895, a statement made by Judge Desnoyers upon the application of the Solicitor General with respect to the suit against the contractor on the Curran bridge for a refund of money which the Solicitor General claimed he had got unfairly from this Government. Let me call atten- tion to some of the details of that transac- tion. It related to two bridges across the Lachine Canal and the Grand Trunk Rail- way. The Government engineer's first es- timate of the cost of completing those bridges was $160,000. .But they proposed to make certain changes, to enable them to deepen the canal and improve the works, and the highest figure which the Govern- ment's own engineer gave as the cost of the work was $223,000. Although the work was within two or three hours run by rail of the headquarters of the Government at Ottawa, what did they do ? They paid $394,000 for that work which their own engi- neer had estimated would cost $223,000, and then they instituted a suit against their own contractors to try to get $170,000 out of him. Let me make a few quotations from the statement of the judge upon the evidence placed before him with respect to the terms of the contract made by the department with the contractor, Mr. St. Louis. Here is a specimen of the wages which this precious economical Government contracted to pay to that contractor : A stonecutter foreman was allowed $4 a day for day time and $6 for night time, $S a day for Sunday, and $12 a day for Sunday overtime. Mr. STEVENSON. You need to take breath after that. Mr. BAIN (Wentworth). You will need to draw your breath when you tell the peo- ple of Peterboro' that you contracted to pay a superintendent $12 a day for Sunday work. A double team got $5 a day, and. when religiously at work on Sunday, it got $10. What else do we find ? We find that a derrick was worth $2.75 in the daytime, but the same instrument was worth $3.75 at night, and it was a religious derrick, be- cause when it had to work on Sunday its conscience had to be appeaseu by giving it $7.50. That was the contract made under the supervision of the Minister richt here in this House. I am not speaking of what occurred outside, but of the contract that these gentlemen made with Mr. St. Louis. He went to work to carry out that con- tract What does the judge say in addi- tion ? He says : And on the same scale for stonemasons, stone- setters and skilled labourers, Mr. St. Louis' bills must have been tremendous, when it is remem- bered the job lasted four months, and that at times there were 2,000 men at work in the day- time and 1,500 men at work at night. The men were paid alternately every week. Mr. Michaud tells us that some of the pays amounted to |34.- 000, some $10,000, some $15,00f» and some $20,000. And yet that went on for four months, al- thov.gh all that time the Minister and his responsible subordinates could have left this House and run down to the work any afternoon, inspected what was going on, and made things right. That went on un- til, instead of paying out $233,000, the Gov- ernment paid nearly $400,000, and yet they ask us to believe that they did not know anything about it, and that the whole thing .6 was economically administered. Let any bon. gentleman go to Ontario and present those figures to the electorate and try to make them believe that this expenditure was a really honest, just and fair expendi- ture of public monoy. When we find that the contractor destroyed his books because his safe was not big enough to hold them after he got through, and when we find him declaring under oath that he had given con- tributions to aid the party in power, need we go any further to find a reason why this extravagance was allowed to go on un- checked ? What did the judge say ? Did he instruct Mr. St. Louis to pay back this money ? No ; he goes on to say : There was no proper surveillance by the officen of the Government on two vi the jobs at least, viz., the Grand Trunk bridge and lock No. 1 of the Lachine Canal. The time-keeping on the two latter jobs seems to have been left to take care of itself, as far as th? Government officers were concerned, so much to that two prominent public officers, high in office, lost their situation on that account. Mr. St. Louis procured fill the workmen that were asked of him. He did not keep time personally, he had several clerki? to do it, and one of them stuffed the lists. This was sworn to by himself, to his own disgrace ; an.i when these lists were sij made and cooked, they were certified blindly and as a matter of form by the officers of the Government. And yet this is the Government which un- dertakes to tell us that they are administer- ing the affairs of the country carefully. The judge thus sums up : In my opinion, the main causes of all the trouble In this matter are v 1st. The extortionate prices stipulated for labour In Mr. St. Louis' contract, and, 2nd. the almost unlimited number of men on the said works, so numerous that they were in one another's way, and Mr. St. Louis cannot be held criminally re- sponsible for these causes. And the judge ruled that St. Louis had only worked up to the contract of the Govern- ment, and declined to order him to pay back the money. I ask if you can parallel that record in Ontario, or any other province of this Dominion under the administration of the Liberal party ? But hon. gentlemen opposite have un- dertaken to show that the policy of the Opposition is unfavourable to the farmer. They have told us that protec- tion has been a blessing to the farmer. I wish to glance at that statement for a mo- ment. You remember. Sir, that when the National Policy was inaugurated, we were told that it was to create a home market which would consume our farm products raised at home. Hon. gentlemen opposite ' declared that to be the best market, and "•' they said further that, in consequence of the stimulus afforded by the National Policy our manufacturers would be able to manu- facture what we wanted at home. In short, we were to put an end to our foreign trade by consuming our farm products at home. The enormous population of operatives, which the National Policy was to place Id our midst, would consume our farm pro- ducts, and, then we would be under noi necessity to import from abroad because we would make everything at home. What are the facts ? Last year we exported nearly $50,000,000 worth of farm products after we had fed all the operatives which the National Policy had brought into Canada. I ask you. Sir. as a business man, how long it will be before, at the present rate, we will have sufficient consuming population established in the country to overtake the production of our farmers, even supposing our farmers stood still and did not increase their pro- duction at all V What are the facts with respect to the protective policy as it affects the farmer ? These hon. gentlemen talk to us about taking off the duties and allowing the Canadian market to be flooded with American agricultural pro- ducts. Do these hon. gentlemen know that to-day beef is being shipped from Torouta to the market of Buffalo to meet the wants of the people on that side of the river ? People do not ship products into a lower market from a higher and pay a heavy duty besides. All winter long the hog market, about which they make much fuss, ha^ been higher in Buffalo, has been higher even in Chicago, than it has been in Toronto. And yet these hon. gentlemen, in the face of tliese facts, will maintain that the National Policy protects the farmer. Sir, I was amus- ed when the hon. member for East Hastings (Mr. Northrup) made that beautiful f;tate- ment of his. with respect to how the National Policy operated to protect the farmers of Canada. He said : ^ ;;r >v ^^ One way is by grinding down the wages of em- ployees and the profits of capitalists, so that we can produce more cheaply in thi.« coxintry than any other country in the world ; that is the way of hon. gentlemen opposite. Another way is to put up a tariff which will make outsiders who wish to come into this market, pay something for the privilege ; that is the Conservative way — the way in ^^?hich we propose to keep our market for our own people. Sir, how do they tax those who wish to ob- tain access to our markets, so far as the farmer is concerned, when this is the posi- tion of affairs to-day ? What is the use of telling us that there is protec- tion in It for the farmers ? Why, Sir, the fact is that these hon. gentlemen are deal- ing with a condition of things that, if it ever existed under the National Policy, ex- isted long ago. and the fact is that the hon. gentleman has got far behind the times and is entirely astray from the facts as they apply to us to-day. So far as the farmers of to-day are concerned, the effect is all in the other direction. Here is what a farmer says with respect to the influence of the National Policy upon one industry, that is the butter and cheese industry. During the last session of the Ontario Parliament, Mr. MacPherson, of Glengarry, spoke thus : A careful study of the expenditure and returns of the business shows that the price of raaf*>'<"ery ard other modern appliances for butter-making has been inci'eased by the Federal tariff suffi- ciently to raise the cost of producing cutter from 1 to 2 cents per pound, and ventured the opinion, that, with improved methods and reduced taxa- tion, butter in a few years could be produced in Ontario at from S to 10 cents per pound. Did he believe that the National Policy was good for the farmer ? Did he believe that the protection that was afforded to them was any benefit to them ? Certainly not ; and every intelligent farmer will share his opinion. The fact stajids out fair and plain that in the year 1894 nearly $00,000,000 of a surplus had to be shipped out of Canada after providing for the wants of our own population. But they tell us that the price of wheat has gone up to-day. Yes. Mr. Speaker, it has gone up ; but what are the cir- cumstances under which it has gone up ? Sir. I supposed that when we developed our railway system in the North-west and gave sixty-two and a half millions of Canada's hard coin to construct the Cania,dian Pacific Railway, we should have had a great high- way that would liave brought our western produce down within our own borders and brought it to our own seaboard, sliipping it entirely over Canadian territory. But what are the facts ? Every one knows that the bulk of the wheat of the North-west went out of the hands of the farmers last fall at from 38 to 40 cents per bushel of 60 pounds, of the finest grade of hard wheat that is raised anywhere on the face of the earth, and that, so far as the Ontario farmer is concerned, the bulk of his crop was marketed at about 50 cents per bushel. A large pro- portion of the surplus of our North-west grain found its way down on the American side from Duiuth. And why ? Simply be- cause American bottoms gave cheaper rates to outside markets than our own lines would give, though they had been bonussed so freely by Canadian money. What was the result ? Two large milling companies, tho Lake of the Woods Company and the Ogilvie Company proceeded to corral all the surplus wheat in the North-west that rliey could lay their hands on. Meantime, the farmers in the older provinces, with wheat below a cent a pound, fed it freely to their stock and used it up in various ways, making the most economical use they could make of it. To-day the price of wheat is high because the companies I speak of have cornered the market and the stock is not in the hands of the farmers. Is that a benefit to tho farm- ers ? Is that a benefit to the consumers ? I venture to say that the only parties bene- fited by it are these speculators and a few small holders of grain scattered throughout the province of Ontario. With the latter I have sympathy, with the former I have none. These are the facts as to the National Policy zi applied to the prices of grain to-day. Our friends opposite are never tired of tell- ing us about the relative position of the farm- er in Canada and the farmer in England. My hoa. friend from East Grey (Mr. Sproule) told us to-day that the English farmer was in a difficult position, that he was being taxed right and left, and he and the Con- troller of Customs and the hon. member for East Hastings quoted to us long paragi*aph8 to show that the Brttish farmer was demand- ing protection. What is the position as be- tween the Canadian farmer and the English farmer ? All that we ask is to be placed on the same level as the English farmer to-day, and we do not ask any better pro- tection than they have at the present moment, nor will we be satisfied with any- thing less. The English farmer to-day buys everything he consumes at the lowest pos- sible rate. I think hon. Gentlemen opposite will admit that. But the Canadian farmer finds rhat his agricultaral implements, such as reapers, mowers and binders are taxed 20 per cent ; and the small tools he requires, such as scythes, forks, rakes, and the whole catalogue of smaller implements used on the farm are taxed 35 per cent. And taxes col- lected from the Canadian farmer are not for the benefit of the treasury. The Con- troller of Customs admitted the other day that when the question arose as to the value that should be placed upon these implements for duty wljien they were imported for the use of the Canadian people, he did not refer the matter to independent officers but to the manager of the combine in Canada that controls the works that manufacture these very implements. If any evidence were wanted to show that this Government is not an independent government of the people, but the servant of the combinations, we have it in that one simple fact. Take, for in- stance, the sugar that the British f-irraoi con- sumes to-day, and what do we find ? Accord- ing to the London quotations to-day the sugar that cost 4V2 cents a pound here is sold in Ejgland at 3 cents, and it is as good to the farmer there who buys it as if he paid 41/^ cents per pound for all he con- sumed. And so with all the articles that he uses, he buys them at the lowest possible rates for he is in the market of the world where eveiything is sold at its fair value. And the only article he pays an increased price upon is his tea. which is dutiable at fourpence a pound, and his coffee, which pays 14 shillings a hundred, or 1% pence a pound. The average consumption of tea in Eng- land is about 614 pounds per head ; and. allowing the consumption of coffee to be one-third additional, the English farmer does not pay more than 75 cents per year duty on these articles more than the Cana- dian farmer pays, who has those articles free. I say that under these circumstances, all we ask 'is that the burdens shall be taken off the back of the Canadian farmer, and that nothing more shall be placed upon him than his fair and legitimate share of the 8 necessary expenditures In connection with the economical administration of the public affairs of this country ; and that the extra taxes that are rolled upon him for the main- tenance of these combinations under this tariff, and of these various other protective Institutions, shall be removed from his baclv, and that he shall be given the same kind of fair-play that the British farmer receives. Let me say one word further as to the plea these gentlemen are making that the Brit- ish farmers are asking for protection. Sir, it will be a sorry day for the National Policy in Canada if the British fanners sue ceed in getting protection imposed. I would like to see the faces of hon. gentlemen op- posite w^ho are telling us that the British farmer wants protection ; I would like to see them go to the people, after their policy had been adopted in England, and tell the people that Canada's cheese was taxed 4 cents per pound to get into the British mar- ket ; that Canada's beef was taxed 20 or 30 per cent to find its way into the British market ; that Canada's wheat was taxed 15 cents per bushel to get there. Where would the shouting be about the protection that the National Policy gave our people ? Do they believe that when Great Britain inaug- urates the policy oi protection, as they would lead us to believe, she is going to protect Canada ? Won't she protect Great Britain first ? And won't these protective taxes be imposed for the benefit of the British public, and not for the benefit of Canadian farmers? Then our friends oppo- site and their policy will be wiped out, and they will find just where their arguments have landed them. But, Sir, hon. gentlemen opposite are never tired telling us about the effect of the Na- tioal Policy in building up our industries. Now, I do not propose to deal with the broad Gtatements about what has been done. I think it is wiser to start the machine, and see how it operates, where you know the facts. These gentlemen forget, when they make th^e statements, that there were active, en- ergetic, and successful manufacturing indus- tries in Canada long before the National Policy was inaugurated. Sir, I remember in my own town that in 1873. just at the time the Mackenzie Government was called to take power, we had a cotton mill, one of the earliest cotton mills started in this Do- minion. It had been operated since 1859, and it had gradually grown up and develop- ed with the country. At that time, the former proprietor died, and it was deemed necessary to enlarge the enterprise, and the public were appealed to take stock in it. The stock T^-as extended then to $400,000 ; and this is the statement that was made as to the result of the operation of that cotton mill in previous years : The mills, with their present capacity, are now earning upwards of 12% per cent, or more than 8 per cent upon the proposed capital of $400,000. That was in 1873, under a 15 and a 17% per cent tariff. Well, Sir, the National Policy came into operation, and what is the result to-day ? That cotton mill has been closed for several years, the $400,000 capital has been dissipated, and not one dollar of it has been returned to the original investors. To- day, the men who, on the faith of the National Policy, and the development con- nected with it, invested their little sav- ings In that town in building little homes for their future comfort, have had to sell these at a sacrifice, and, in the majority of cases, have left the country to secure em- ployment and earn a livelihood for them- selves and their families. vVhat was the position of the Ontario Cotton Mill at Ham- ilton ? I speak of what I know. A friend of mine, a gentleman that I know person- ally, lost $20,000 in that venture out of $30,- 000 he invested, and he was only one man. Another gentleman that I know had a couple of thousand dollars in another mill. We have heard a good deal about whit these mills are doing lor the employment of operatives. If you go back to the census of 1891, you will find there is a cotton mill in a town about twenty or thirty miles west , of where I live, which is returned as em- ploying 180 hands, and as paying out $42,- 000 a year in wages. When you divide that up amongst the hands, it comes to the mag- nificent figures of $4.25 each, per week. Last year, under the benign influences cf the National Policy, even that pittance of wages was twice reduced, under the bless- ings of the administration of this cotton ring that now controls that mill. Do you call that a blessing to the operatives of Canada ? Is that the way the National Pol- icy wsa, to give employment and develop the ; country? In the same town there is a wincey mill that figures in the census of 1891 as employing 100 hands and paymg in wages, $20,000. It has been standing idle, and is closed. The $20,000 is no longer paid, and the operatives are scattered to find a living as best they can. But this mill figures ■ ; * regularly in the returns of the industries ^ • that the National Policy has brought into > existence. Now, let me draw your atten- ^i , tion to another result of the National Policy. V as applied to the cotton industry. Our .- cotton mills in Dundas, so far as my .. recollection goes, went under the control ^ s of the Dominion Cotton Company, and 1 think their annual report of two years ago shows that the company con- trolled ten mills, scattered throughout this Dominion. What is the effect of that centralization of the cotton industries on the operatives in these various mills ''' I can speak again from personal observation. One mill, after running four days in the week for two or three years, finally ceased to run altogether, under the blessings of the National Policy, the operatives had to seek employment elsewhere, and they went to another mill under the control of this com- 9 pany. They left their families in their little homes in my town and went there to worlj. They tried It for a month or two. and what was the statement they made ? They said, the wages are so miserably low that by the time we| have paid for board, we have no- thin? left with which to maintain our fami- lies awaj' from us, and to meet the increased cost due to the different membLn-s of the family not living in one household. What became of them ? They had either to ac- cept the pittance offered, or to tal^e the other alternative and leave *his country and go ^ to a foreign land to earn the bread that the National Policy denied them. What has been the result as applied to the Dominion Cotton Company ? They simply closed down the mills and regulated the output accord- ing to tlie consumption. But they exercised mighty good care to have the benefit of the full protection that the National Policy gi.vQ them. What is the amount of their last dividend ? Here is a quotation from one of the Montreal papers of only last month : In spite of the bad year, the Dominion Cotton Coinpaay has earned $320,000. or 10% per cent nearly, on their full capital of $3,000,000. When It is remembered that at least half of this capital is watered, the actual earnings are very large. And that amount is wrung out of the opera- tives because they simply have to take the alternative of accepting the wages this combination chooses to give them or leaving the country, because if they leave the mill and go to any other mill in this country they are* confronted with the same control. That is one of the blessings of the National ■ Policy as applied to the cotton industry of this country, and that isf one of the things for which we are aslied to bow down and be thankful. . Sir, let me draw attention to one other institution, an institution organized in Toronto at the time the National Policy was brought into existence for the purpose of presenting to the people the great blessings the National Policy was going to confer on them. I quote from the Toronto " World," an orthodox journal on that side of the . House : , . This institution started in with a paid-up stock of $200,000. They got from various friends in addition $100,000 more. Under the pretense of giving business men an equivalent for their money, they obtained $200,000 more, which alto- gether amounted to about $500,000. The institution did not prosper— it could not meet expenses. Last November a fresh syn- dicate took hold of the institution, and did they offer its old stockholders 100 cents on the dollar for their investment ? Not at all. They asked them to hand over their stock without receiving one cent, and in return the new syndicate was to rejuvenate the concern and put it on a paying basis. They started in November to put this establish- ment on a paying basis. They operated it for some weeks, and what became of it ? It died a natural death. An hon. MEMBER. Unnatural death. Mr. BAIN (Wentworth). Yes, it was stran- gled. Nobody would furnish money any longer to run it, it could not earn enough to run itself and pay the management. What did they do ? They superannuated one public officer in Toronto and api)ointed the manager in his place at $3,000 a year, and on 6th February, in the middle of the cold winter, they opened their doors and turned out all the operatives and left them on the street to shift for themselves. That is the history of the " Empire " journal, the great organ of the political party opposite. What is the history of the National Policy as applied to the agricultural implement in- dustry ? You can scarcely go into a town or village of any importance throughout western Ontario but you will find an estab- lisliment lying idle, the whole capital In- vested lost and the proprietors doing— what ? Either going into other lines, or acting as agents for the great central combination which controls that industry. Has that been a blessing to the people of Ontario ? Has it been a blessing that the various establish- ments scattered over the country should be closed and the business centralized at two or three points ? I think the majority of the people of western Ontario will agree with me in saying it has not. You cannot go into a town or village of any importance in the west but you will find one of these dormant industi'ies. The chimney will be standing there all right, the building will be there but the operatives have gone and the capi- tal—where is it ? Just a few months ago I had occasion to visit an active town in the centre of a good agricultural district in the county represented by the Secretary of State, old Haldimand. I happened to walk inti, a large brick building, and I said to the gentleman in possession : For what pur- pose was this establishment erected ? His answer was, this was erecred for a shoe factory. I asked, how much capital was put into it ? He replied, about $25,000. I asked, did they) make any money ? Hq re- plied, no ; we did not make any money, the capital is all gone, and 1 have rented the building for $70 a year as a place in which to carry on my little. business. That is the revenue arising from the investment of $25,- 000. I do not select this as a special ex- ample, because all over the province there are such examples. I venture to say that more capital is locked up in dormant indas- tries in Ontar +han was ever locked up in any other en^ -cept one enterprise promoted at an e**. te by this Govern- ment in connection w ,a the North-west, and that was when they started that great boom that was going to make everybody rich— the Colonization Companies. Sir, there are thousands of Ontario people to-day who are 10 pfiyl ng interest on money that was invested in those companies, who have a lively recol- lection of the wild goose chase led them by bon. gentlemen opposite when booming these enterprises. There never was a time in the history of Canada as last winter when the banks were so crowded with money, not seeking employment, but gathered in from active industry until the bankers were driven almost to despair to know what to do with it, and yet parallel with this is tlie fact that there never was a time in the his- tory of Canada when so many men hon- estly seeking for labour on the street were denied such labour and thereby their daily bread. This is another proof of tlie effect of the National Policy as applied to-day. Hon. gentlemen opposite are never tired of telling us about the development of the trade which is being secured to us outside of Cana- da, and the benefits that accrue to us in conse- quence of the development of that trade. What are they doing on that agricultural implement manufacturing industry to-day ? Only a few months ago the Government passed an Order in Council providing that when a manufacturer exported one of these implements outside of Canada, and sold it to the competitors of the Canadian far- mers in the United States, the Argentine Republic, Great Britain, or anywhere else, the manufacturer should get back 99 per cent of the duties that he paid upon the raw material that entered into the produc- tion of that implement. How did the Gov- ernment treat the Canadian farmer with respect to that implement ? Let me quote to you on that matter, a few words from the organs of the Patrons of Industry. Some hon. MEMBERS. Oh, oh. Mr. BAIN (Wentworth). Do hon. gentle- men opposite think that the Patrons are not farmers ? Do you think that they have not got intelligence the SL.me as we have ? I heard one gentleman on that side of the House use the term " illiterate Patrons, if there are any." You did not hear it from this side of the House, but he qualifies it ; illiterate Patrons. " if there are any." Sir, I say it is an insult to the agricultural popu- latioii of this country. It is an insult to the Patrons of this country. What is the reason thatj the Patron institution is in ex- istence to-day ? It is simply as a protest against the burdens that this Government have imposed upon the farming community, They feel that things are out of joint, that they are not getting fair-play under the present administration of public affairs. and like everybody else they band them- selves together for the purpose of advancing their own interests. Sir, I remember when gentlemen opposite cultivated that organiza- tion very carefully, just a little less than a year ago. All the nice things they could think of were said about the Patrons and their policy ; but for how long ? Just while they tried to use them for the purpose of defeating the Ontario Government, and when gentlemen opposite did not succeed in making the Patrons a tool for that purpose, then they turned around, and now they call them " illiterate Piitrons." I point to the existence of that organization as an evidence of the feeling of unrest that is abroad to-day, because of the conditions induced by hon. ge itleraen opposite and their policy as ap- plied to the country. Now, this is what the Patron organ said on the 1st of May, so that it applies to the present time, and it is none of your seventeen-year old fairy tales such as we have heard from that side of the House : The low tariff makes it more profitable for England to trade with them than with Canada. It is obvious the Canadian farmer, taxed Dy the tariff and combines till bis back is sore, Is in no position to compete with Argentina. Not content with imposing those drawbacks on our- selves, we have recently ordered that the Can- adian manufacturer of implements, who imports his pig iron, coal, steel, &c., and pays high duties thereon, shall be allowed a remission of 99 per cent of the duty when the finished goods are des- tin«^d for Argentina, Australia, United States, or any other foreign competitor, but shall pay the whole amount of duty and charge it to the Cana- dian consumer, with interest and profit added, \.hen the machine is sold here at home. To "promote Canadian industry : keep Canada for the Canadians." And this is to promote Canadian industry and to keep Canada for the Canadians. I recommend hon. gentlemen opposite to wres- tle with these facts, and I ask them if they are not literally true? The pig iron that goes into these implements has been' taxed at the rate of $4 a ton, and if it is Canadian iron there is $2, a ton bounty added to en- able the Canadian manufacturer to produce it. All his other articles are taxed in the same ratio from $10 to $13 a ton on the other various grades of iron that enter into the manufacturing of these implements. Everything is taxed for the benefit of some- body else, and just as the paper I have quoted from says : If that implement is sold to the Canadian farmer, he has to pay every cent of that duty, whereas if it sold to his competitor down in Argentina he gets every cent off. Do you: call that keep- ing Canada for the Canadians ? Now, just let me look for a moment at the competition the Canadian farmers have to face. We have to find a market outside of Ca- nada for $50,000,000 worth of our Canadian products, and who do we compete with ? We compete with Argentina, for example, that last year, according to the British official re- turns, sent 13.000,000 cwts. of wheat to the British market, sent 30,000 live cattle, and sent one and a half million carcasses of frozen mutton. Under what conditions do the people of the Argentine Republic ship these products to the British market ? The River La Platte is navigable for 2,000 miles 11 for large vessels up into those great plains of Argentina. They raise that wheat and those cattle almost in sight of the ocean steamer that takes those goods on board and delivers thom into the English marliet where they meet us on exactly even terms. What is oui' position in Canada ? We gave $02,- 500,000 to build the Canadian Pacific Rail- way to carry our products from the great plains of the North-west down to the ocean, ard we have cnarged such high rates on that railway that the bulk of that wheat last fall found its w^ay through American channels down to the seaboard. We have to meet the Argentine farmers in that open market of England under those conditions, and, Mr. Speaker, do the Government call that keep- ing Canada for the Canadians ? In addi- tion to that, these gentlemen in Argentina have this advantage, that while we are taxed at from .30 to 35 per cent on what we buy and consume, their duties run from 5 per cent on cottons up to 10 and 15 per cent on other goods. They do not pay half the duty that we pay to begin with, and they sell goods against us in the world's markets on even terms. And yet gentlemen opposite tell us that the National Policy is a blessing to Canada, when we have to sell in face of that competition, and when we have that competition more intensified by the action of this very Government in giving the Argentine farmers their imple- ments at a rate of duty cheaper than what is imposed on the raw material that enters into our implements. Sir, let me quote to you one statement made by an American as to the energy and development of that country as our competitor. He said : Before long Argentina will yet eclipse Chicago as the meat-packing centre of the world. Think of it, Mr. Speaker, and we are selling those men implements cheaper to-day than we sell them to our own people, and our Government calls that protecting the Cana- dian farmer. Let me draw^ your attention, Sir, to another advantage that the farmers of Argentina have over us. I quote from an Englishman who is an ardent advocate of the policy of hon. gantlemen opposite, as applied to England. I quote from Mr. Howard Vincent, wMth whom we are all familiar. He speaks of the internal eco- nomy of Argentina, and he says : A paper money now depreciated between 200 and 300 per ceni,, now secures nearly as much labour and food as it did when it was at or nearly par. The premium on gold is of the greatest advantage to the agriculturists. They pay for their labour, food, and indeed for their holdings, in depreciated paper, and they receive gold for their exported herds and crops. Its re- duction will be firmly resisted by them by all possible means, and, if sudden or violent, would entail serious disaster. To the merchant it is different. He has to pay gold for what he Im- ports, and can with difficulty obtain its equiva- lent in paper when he sells, and people cannot understands why he wants so much more " na- tional " money for his goods than before, and buy sparingly or dispense with the article. And this is the kind of competition that our Government is encouraging to-day by taking the duty off the implements that we sell to them and putting it on the Canadian farmer who has to compete with them. In connection with that matter let me draw attention to the methods tbie Gov- ernment have adopted for the increase of our trade. Sir Charles Tupper, in 1888, foreshadowed the ^ idea of stimu- lating our West India' trade by sub- sidizing a line of steamers for that purpose, and in 1890 our present Minister of Finance took a trip down to the West Indies with the aid of his private secretary, and at the cost of nearly .$1^00 spied out the land to see how the trade was. In the following season the Jamaica exhibition was opened and we spent .?22,000 in pushing our products before the people of Jamaica. We sent, as our commissioner, our old friend, whom we all remember and whom we liked to see so well for his genial ways, Mr. Adam Brown, of Hamilton, and spent some $5,000 for his services and expenses as our agent. In addition to that, we sub- sidized a line of steamers to develop that trade, to the extert of from .$73,000 to $97,- 000 a year for the last four years. What has been the result of all this labour, and this liberal expenditure ? Let us compare the trade with the West Indies in the fire years from 1874 to 1878. with the trade which has been developed under this National Policy boom from 1890 to 1894. For the first five years, our average ex- ports were .$3,720,000 per year, whereas, in the latter five years they were $3,195,000 a year. So that, notwithstanding these sub- sidies of about $90,000 a year, we have not created much of a market for Canadian pro- duct* in the West Indies. But what does the comparison show with regard to our imports from the West Indies V During the five years from 1874 to 1878. our average imports Mere $1,678,000 per year, and dur- ing the five years from 1890 to 1894, they were $3,660,000 per year. That was a mag- nificent development, was it not ? We had increased our imports to more than double. But let me draw your attention to a little event that intervened in the interim. We had taken the duty off raw sugar alto- gether ; and if you examine our trade in detail, you will find that great development to be due to that fact, and not to the sub- sidies given to the line of steamships. Mr. WELSH. Free trade. Mr. BAIN (Wentworth). It was free trade '■■ as they have it in England applied to sugar —that, free trade which hon. gentlemen op- posite are so worried over, and which they are so anxious to ascertain the meaning of. On these imports the average duty per year collected, in the first period, was $646.- 000 ; and in the last period, .$687,000 ; but 12 the average of the last three years, after the duty had been taken off, was only $293,- 000 ; showing that the increased trade was not due to the subsidies, but to the fact that we afforded the West Indies a better market for their sugar by removing the duty. As a result, we have sacrificed about $400,000 a year of revenue, besides the sub- sidies' of $90,000, without succeeding in getting a market for one dollar's worth more of Canadian products. What are we doing in regard to the Australian trade that we have heard so milch about— another mode in which it is proposed to protect Canada for the Canadians ? The Prime Minister inaugurated the efforts of the Government to develop a trade with Australia by going * out there and travelling around on a pleasure trip, which cost us $2,745. We have also sent an agent to Australia. This Gov- ernment, it appears, can do nothing to de- velop a trade anywhere without sending out an agent, and we have Mr. I.arke out there, at a salary of $3,000 and expenses, to look after our interests and develop our business. In addition to that, we are paying $121,000 a year by way of subsidy for nine trips of steamers between Canada and that country. As a result of these efforts, we are developing a trade with Aus- tralia without doubt r but we are not going to be able to send any cotton goods there, if we are to judge by last year's exports of our highly protected cotton combine, because 1 find that they sent just $8 worth of cotton goods to the whole of Australia. Whatever goods we do send to Australia will be agri- cultural implements and machinery, on w^hich our people have to pay the full tax under the National Policy, while it will all be taken off to enable the Australians to get cheaper machinery than our own peo- ple. Now, what does Australia send to us? Everybody knows that it is a great wool- producing and mutton-producing country. Let us look at the goods we got from Aus- tralia last year. They do not amount to very much ; but the chief imports I will mention. We got $0,250 worth of green apples. Now, we raise apples in Canada, and we consider them pretty good ones. We imi)orted from Australia, also, 59,000 pounds of butver, valued at $10,421. I do not think we need to bring butter into Can- ada from Australia, and to subsidize steam- ers in order to do so. Of lard, bacon, salt beef. &c.. we brought in $1,300 worth, and we brought in 61,200 pounds of mutton, valued at $1,797. I think it will be admitted by all hon. gentlemen on the other side of the House that these are not articles which we should spend money in order to bring into Canada ; and yet these are the chief im- ports that came to us last year from Aus- tralia. Now. how does the National Policy protect the farmer in the matter of wool ? It carefully puts a duty on such wool as we produce a surplus of in Canada ; but it does not charge one farthing upon the wool which the Australians send into Canada ; that comes in free. Now, what does the Dominion Grange think of this attempt to promote trade with Australia ? Hon. gen- tlemen opposite sneered a little while ago at the name of the Patrons of Industry, when they were mentioned in this House ; let them sneer at the Dominion Grange. I can only say that that organization was brought into existence because of the pres- sure of circumstances that drove together men who felt that they were being un- fairly treated under the policy of the Gov- ernment ; and what do they say ? This is not the history of seventeen years ago, but the history of to-day, dealing with the live issues of the moment : We desire to enter our most strenuous protest against subsidizing a line of steamships to Aus- tralia. As the products of that country are similar to the agricultural products of Canada, but are produced at a very much less cost, this • would be a blow at our home market, and taxing ourselves to destroy our interests. I think the majority of thinking men will say that is a fair estimate of the efforts the Government are making to develop trade by taking money out of the pockets of the Canadian farmers to subsidize lines of steamships to bring into Canada goods to compete with the products of our own peo- ple of which we have alreadj^ a surplus. Under these circumstances, it would be a wonder if organizations of this kind had not grown up in our midst, and if they did not feel that the pressure was more than they were willing to endure. But, Sir, I want, for a moment to glance at the process by which the Govern- ment are now working out the de- tails of thf National Policy. They told us that they proposed to tax the goods of those people who want to find their way into the Canadian market, and they proposed to do this for the purpose of keep- ing Canada for the Canadians. That might have been true some years ago. Is it true to-day ? What is the history of the changes of taxation as developed under the admin- istration of the present Government V Let us look for a moment at the mode in which they have developed our taxation. When the Finance Minister first entered on his office this is the statement which he made on the 27th March, 1890 : I stated last year, that, looking at the condition of the country and looKing at the munificent con- tributions which have been given by this country for her public works— it seems to me that we ought not, after the close of the year 1889, to in- crease the public debt. That we ought not to increase the public expenditure for ordinary pur- poses, and that it was possible to meet the capi- tal obligations we had already assumed, and to go to the year 1892 without adding to our net debt. After that we might consider whether or • 13 not we could not gradually decrease the debt which we have assumed and placed on ourselves. He was tJien referring to the year 1SS9, and he repeated and emphasized that state- ment. He said : Now, Sir, ' am here to-day, one year after the time of making that statement, to that doctrine. Let me quote one ex- ample — and I have to aclvnowledge my in- debtedness again to the Toronto " World '' —to show what is done eveiy day by Canadian industries which have never asked the Government for drawbacks on goods which they have exported, but who honestly consume Canadian iron in their in- dustry and pay the burdens that were im- posed upon them, and sell their goods to the community in open competition. Here is what the Toronto " World," in the month of March said with respect to one of these industries. Speaking with the representa- tive of a new establishment in Toronto that was entering into the manufacture of bi- cycles, it says : I am every day becoming more firmly con- vinced that we can manufacture bicycles and ma- chinery just as well and cheaply in Canada as in any other country in the world. In proof of ^ his I may say that we have just received from Messrs. Bertram & Co., of Dundas, a consign- ment of lathes, special tools and formers for use in the manufacture of our bicycles, which cost us one-third tha figure tendered by some of T B 2 the leading United States manufacturers. These tools and machines were made from the models of these in use by the Beeslon, Huraber Company, of England, acknowledged to be the most accur- ate and perfect in design, perhaps, in use at the present time. I sent the same specifications that • went to Bertram & Co. to the United States firms, and the difference in the tenders sent in fairly staggered me. I can tell you. We, of course, then awarded the contract to the lowest tenderers, and we are now more than pleased at the manner in which the Dundas firm carried out their work. Here is an establishment that has not asked to be bolstered up and protected. They are friendly to the National Policy, staunch supporters of it ; but. in the face of all those facts, here is the evidence that they do manufacture successfully to-day. and that they put cheaper goods upon the market than can be bought on the American side. Those are men who have pluck sufficient to attend to their business, and they do not belong to that type of manufacturers who have to go around and lean on this Govern- ment for aid and support Sir, with respect to the question of how Canada should be developed and our in- dustries advanced, I want to present the House with a quotation from a journal that has never been accused of being Liberal in its political antecedents or associations, and which has been known as the organ of a section of this community which has been solidly and staunchly Conservative. Let me read from that article briefly, for the information of the House. I think it puts the question in better form, and it answers the statements of hon. gentlemen opposite much better than I can do. It was dated the 14th March, 1895, and it says : Canada ought to be one of th3 greatest and most progressive nations of the world. The Dominion covers one-fifteenth of the earth's sur- face, embraces about 40 per cent of the British Ejnpire, and is onlj' exceeded in extent by Russia, and its resources are in keeping with its extent. But it does not progress as it should. We are supposed to have drawn 800,000 immigrants from Europe in the ten y.3ars endin? 1890, yet our net increase of populatior was only 500,000 as against 19 per cent in the previous docade. There are several reasons, but the chief one after all for the slow advancement of Canada is found in the trade conditions that exist. We want consumers for the products of our fisheries, forests, mine.^- and I'arms far beyond the i capacity of this country to supply. This want could be supplied by the United States to a certain extent, but their terms — free trade with them and discrimination against the mother country — are such as no loyal citizen of the Empire could accept. Across the sea, in the British Isles, is a market for all, and more than all, that we can produce. Why do we not furnish a larger portion of her supplies ? Because it is a natural law of com- merce that trade cannot flow all one way — one nation cannot sell to another without buying something in return. ' And as we in Canada by an almost prohibitive / tariff on British goods restrict our purchases in / 18 Great Britain, we, by that very act, restrict our faales to that country also. What should be done, therefore, is to make a sweeping reduction in the customs duties now- levied on manufactured goods importf*d from the • United Kingdom. The adoption of this policy would vastly cheapen many articles that are used daily by our people. It will, by increasing our purchases in the mother country, add to our sales there as well, and it will make the cities of Can- ada the purchasing market for huudreds of thou- sands living just across the border. Two objections to this policy may be antici- pated. The alleged iiflficulty in raising a rev- enue and the interference with local manufactur- ing enterprises. In reply to the first objection : The increase in the consumption of British goods would more than make for the national trea- i-ury for the reduction in the rate of customs taxation, besides reducing the expenses of the Government. Canada is offering $750,000 of a yearly subsidy for a fast steamship service on the Atlantic, and the treasu^'y is now Deing drawn upon for what is virtually a subsidy to in- crease our butter exports to England. With- draw the artificial barriers against trade with the mother country erected by ourselves, and there will be a sudden bound in the commercial inter- course between us that will make both of the above expedients unnecessary. Sir, tbat is not ruj- language. That is the language of the Orange " Sentinel," a journal Avliich has never been accused of Liberal proclivities. I commend it to the gentlemen opposite who are wandering around in the gloom and darkness of the past by-gone years, wondeiing what free tiade as they have it in Great Britain means. Here is one of their own friends who has no difficult^' in expounding the policy we are advocating with respect to developing and advancing the interests of our people in Canada. But, we are sometimes told that we are not very consistent in our advocacj^ of trade rela- tions, and that one time we talk reciprocity, and continental free trade, and trade with Great Britain, and lots of other statements are made like tbat I want to give to you, Mr. Speaker, an authority on the advantages to our people of trade with the United States that will not be disputed by even the Min- ister of Finance himself, when I quote it. It is the opinion of a gentleman who has been in this House for many years, and this is the statement he makes before his elec- tors, gathered last summer for the purpose of discussing the selection of a candidate for his county. He said : He had a duty to perform before leaving Par- liament, and he had already induced the United States Government to reduce the tariff on horses, barley and coal, and he was still in communica- tion with an agent of the United States Govern- ment to bring about a further reduction in the American tariff which would benefit the farmers. He further stated that no person would be more disappointed than Sir Mackenzie Bowell, if he did no* receive the nomination. Is that not rank heresy to proceed from any gentleman who is a supporter of the National Policy V Why, Sir. it is worthy of a Grit of the deepest dye. He says that it is a benefit to the Canadian farmer to have the United States tariff reduced, and that he is securing reductions on horses, barley, and coal. Why, Sir, it was my respected Triend from Cornwall (Mr. Bergin) who said this ; and 1 am quoting from a report in an organ of the Government of the day, written by a friendly hand. Sir, I have been grieved and ashamed to listen to hon. gentlemen opposite de- nouncing day in and day out the posi- tion of the mother country— the country tliat has never failed to stand by Canadian interests, that has given us the shelter of lier protection and the shelter of her name through good report and evil report. Yes, the.se men are never done telling us that in free trade Britnin distress prevails every- where, and that people are suffering and in want, and are travelling towards a protec- tive policy. Mr. MILLS (Both well). They are preach- ing blue ruin in England. Mr. BAIX (Wentworth). Yes, preaching blue ruin in England. They carefully quote to us some of the Ciimpaign speeches of ilie Conservative party in England, made a year or two ago ; but they do not quote to us the divisions of tlie House that have recently taken place on any of those ques- tions. It may do to go into the country and tell the farmers that they are oppressed, that competition from the outside is strain- ing their resources and reducing the income of their estates ; and ^ if you apply that statement to the proprietors of those es- tates, it is perfectly true ; but if you look back through the historj- of England for a few generations, j'ou will find that some of those gentlemen gave very little, indeed, for the estates from which they are draw- ing lar^e revenues to-day. Suppose the prices of the products of the farm were doubled to-morrow, and kept so for a few years, how much of the increase do hon. gentlemen suppose would fall to the aver- age tenant farmer ? Would not the aris- tocracy who control their lands immediately proceed to put up their rents to match V But I want to call attention to another (juotation, bearing on this very question, from a journal which cannot be accused of Grit proclivities or of being unfriendly to the Government of the day ; and I com- mend to hon. gentlemen opposite the sturdy and vigorous language in which it charac- terizes their conduct in thus belittling the mother country that has done so much for us. If they turn to the " Orange Sentinel " of the 25th April last they will find this paragraph, headed, " Distress in Great Bri- tain " : Many United States and some Canadian papers are constantly telling us that great distress pre- vails in Britain. The British Parliament ap- pointed a Royal Commission to Inquire into the condition of affairs. The inquiry included the 19 period of the great storms in Britain, storms un- pecedented for more than fifty years. In spite of this terrible weather, the people of Great Bri- tain suffered less actual distress and have been more prosperous than those of any other country under the sun. The commission sent out inquiries to all lo- calities in England, and received 1,194 replies from districts representing over 20,000,000 of a population, with these results : 569 localities, with a population of nearly 7,000,000, report no exceptional distress ; 454 localities, with a popu- lation of over 10,000,000, report that there is ex- ceptional distress, due solely to the severity of the winter ; 144 localities, with a population of 3,700,000, report exceptional distress from want of employment, due to slackness of trade, depression in agriculture, or particular local or Industrial causes. Scotland, Wales and Ireland are dealt with separately, and show that, apart from the sever- ity of the weather, no exceptional distress pre- vails. The returns prove conclusively that the mass of the British people are not suffering. Britain iiolds her own in everything that tends to raalce a people great, and lying telegrams to Yankee papers are only sent to help the combines and commercial thieves in the United States, who flud it pays to abuse Britain. We regret that any Canadian paper should re- produce these lying despatches and try to bolster up Canadian combines. That, Sir, is no statement from my side of the House. It is a statement from a journal that has never staggered in its allegiance to hon. gentlemen opposite ; but the force of the truth compelled it manfully to ad- minister this scathing rebuke to those of hon. gentlemen opposite" who are pei-petual- ly belittling the country which is the birth- place of many of us and the land we are all proud to be associated with. Sir, we are sometimes told that the National Policy has developed the country, has kept our people from leaving us, and has built up in our midst industries that ha^e been of advantage to our people. There is just one thing to which I wish to draw the attention of the House before I conclude, and which I think does not quite correspond with this statement. I refer to the redistributions that have tiiken place in my own province of Ontario and through- out the Dominion generally. You will re- member, Sir, that after the^' census of 1881, when there was a Redistribution Act passed in 1882, Ontario had so far advanced in population and development that she was entitled to four additional members. x»^. ^*- toba had also grown in the short neri 1 between that and the time she wj^ .v,ii- stituted a separate province, and ^ a y,r'^ membiir added to her representation, and the confederacy was entitled, by increase of population, to five additional representa- tives in the House of Commons. Ten years of the National Policy passed over the coun- try. We took the census of 1891, and we came to the redistribution )of 1892, and what did we find ? We found that in the premier province of Ontario our population had not gained at all, but had simply kept step with that of the province of Quebec, which is the standard province of confedera- tion, and that if we had not gone back. ■ t any rate w'e had not gainetl. This showed conclusively that Ontario had not retained her natiu'ai increase of population during the ten ^oars of the National Policy, from 1881 to 1891. What was the case in the other provinces ? Manitoba had gained two members, showing that notwithstanding the v-ealth that we had freely poured out, and the temptations we had held to Europeans to cor.ie and settle on the broad prairies of the North-west, Manitoba was only able In ten years to gain two additional represen- tatives, whereas in five years, under the old regime,/ she had gained one. How was it with the maritime provinces ? Nova Scotia was not able to retain her popula- tion, and her contingent will come back after the next election one member less. New Brunswick will have two members less, and the tight little Island of Prince Edward —the little gem that iies out in the gulf by itself, and there is no finer agricultural coun- try on the continent— will have to content itself with a reduction of one member. This shows that in the aggregate the eastern provinces by the sea have 1 >st population, since they are not able to rf lain the number of members they formed, had. British Columbia was entitled" to nv increase. As regards the province of Ontario what are tlie facts ? Hon. gen', emeu opposite boast of the build: fig up of our population by the National PoHey, and point with pride to the growth of some of the larger cities. But, Sir, Toronto has grown at the expense of the smaller towns and villages, within forty miles of it, and the only part of Ontario where the population has increased is the new district of Algoma, and there the in- crease is due to the development of its min- ing industry. What was then the action taken by the Government. They were in the posi- tion that they had to redis^tribute some of the constituencies in order to equalize the re- presentation, whereas if the National Policy had done all they promised it would, In- stead of diminishing they would have re- quired to increase the representation. Not only would th3 older constituencies have retained their representlhion, but they would have increased it. Two of the older con- stituencies, however, in the Niagara penin- sula, had to be blotted out, and their record, dating back to the early history of the pro- vince disappears. By the action the Gov- ernment took they might just as well have papsed an act declaring that the part of my constituency attached to North Brant should rot vote at all. For what reason ? In the constituency to which they are attached, candidates of the party oppo- site, during the last two general elections, lest in both cases their deposit ; and for fear the Liberal element of that constituency 20 sbculd not continue to do that sort of thing, we rtnd the Government adding to it a section of another riding, which gave 350 of a Liberal majority at the last general election. They did this to enable the elec- tors to still make sure that any candidate of hon. gentlemen opposite who would have the temerity to again test that constituency, would again lose his deposit. They might just as well have passed an act declaring that Conservatives and Liberals alike added from North Wentworth should be deprived of tlie right to vote because they were put where their votes could not be successfully used. But, Mr. Speaker, you may change the outlines of a constituency, you may readjust your boundaries,- but you can- not control the free and independent electors who reside within those boundaries. The population of Ontario, be they Conser- vatives or Liberals, have at least minds of their own ; and I shall be very much mis- taken if the Government do not find, that their policy has done nothing to strengthen them in the estimation of the best thinking I men of the Niagara peninsula. You may change these boundaries and adjust these schemes, but the experience of hon. gentlemen opposite in 1882 indicates that the people are free in their choice and will suit themselves when the time comes. I apologize to the House for the time I have taken, and I thank the House for the kind at- tention It has given my remarks. We are will- ing to bear all the necessary burdens in order to pay our debts and maintain our credit and good name. We are willing to bear the taxation imposed upon us to meet the necessary expenditure of this country ; we are willing to give our native industries every benefit of that protection up to that extent ; but for myself I am not willing that any man should deliberately put his hand i into my pocket and take more or less money i out in order to bolster an institution that I has not backbone enough to stand on its I own legs, and I shall be found voting for i the amendment of the hon. member for South ; Oxford.