:mage evaluation test target (mt-s) 1.0 I.I 1^ 1^ 1 2.2 a Ui — 2.0 1.8 1.25 1.4 1.6 < 6" — ^ % ^ 7 ^^ ^^v X ^. M /A ^^^ Photographic ices Corporation VS WIST MAIN STRUT WIBSTER.N.Y. 14580 (716) «72-4503 '% fV ^^ 11 I A i T year, $1,210,000 ; that the revenue from public works will be 12,286,- ^00, as we estimated last year ; that bill stamps will yield $190,00 ; that the interest from investments will be $600,000, and that the revenue from all other sources will be $700,000. The estimated ex- penditure made in March last, including the supplementary estimates, Amounted to $25,315,786 ; the supplementary estimates which were submitted to the House a few days since, amounted to $457,608 ; this includes, 1 am sorry to say— for we are compelled to ask Parliament for another vote — a grant of $200,000 to meet the demands made this year for Indians, being the same amount which was required for this purpose for the year previous. But, sir^ the sum total amounts to $25,773,394, less the votes which will not be expended, and which will be dropped at the close of the fiscal year, although a small propor- tion of them may be carried over for expenditure next year. I estimate this amount at $200,000^ and I t^ink I may, tlierefore, safely say that the expenditure for this year will not exced $25,573,394. If our estimates are correct in this respect, Mr. Speaker, the surplus for the present year will be $2,011,000, or ^2,000,000 in round numbers. I know that there are hon. members in the House who, not looking carefully into this matter, may hare supposed, from the statements which were made from month to month, and fi'orti seeing the increase in the revenue as compared with the con*esponding months of the previous year, that the revenue would have been larger and that the surplus would have been larger also, but when I call their attention to the fact that during the first six months of the fiscal year previous, $1,300,000 was lost to that year, it having been credited to the year previous, and that, therefore, in making a comparison, you have to add to the six months previous $1,300,000, they will see at once that the difference between the receipts for the first six months of the two years would be materially affected ; but I think that it will be considered satisfactory to the House and to the country that, under existing circumstances, we have every prospect of having at least $2,000,000 as the surplus for the current year (cheers). So I think that beyond doubt, sir, the revenue-producing power of the present tariff and, as I will show by-and-bye, also the poM'er of the tariff to stimulate the industrits of the country (cheers) is clearly established (applause). NEXT YEARS ESTIMATES. I now, sir, come to the eatimates for tlie next fiscal year. It is estimated that the receipts will bo as follows: — Customs $17,000,000, excise $5,000,000, post office $1,300,000, bill stamps $190,000, public works, including railways, $2,300,000, and interest on investments $650,000, making, with the revenue accruing from all othei sources, $27,800,000 (cheers). The estimates of expenditure submitted to the House amount to $26,189,896. I d© not know at the present moment what the sup- plementary estimates may amount to, but they vary in different yesLYi>. I trust that they will not be large, because we were exceedingly anxious to obtain all that it was possible to submit as the main estimate for the year, but I will add $200,000, for I find that two or three items are omitted, either by the clerk or by the printer, and probably this occurred during the checking off by the clerk, but stating this estimate at $200,- 000, the estimated expenditure for next year will amount to $20,389,- 896, leaving an estimated surplus of $1,410,104. Now, sir, 1 beg to Ottll the attention of the House to a few of the items in the pres- ent estimat<3. With an increased expenditure for the next year, the House will not be surprised, sir, considering that the estimates contain an expenditure under the head of capital of something like $14,000,000 for the Pacific Railway, for canals and for other public works, that an increase in the interest on the debt will be necessary during the next year, and therefore the sum of $319,605.37 has been added to the interest on the debt and sinking fund for next year. The subsidies to provinces show an increased estimate of $33,919.78. It becomes necessary to take the census this year and under the Union Act we are required to pay 80c. a head on the increased population to all the provinces which have not a population of 400,000, and in the nenotia- tions which are at present going on with Manitoba it is probable that there will be an increase given to that province, especially if the boun daries are extended. It is, therefore, estimated that in round numbers $34,000 will have to be added to the item of subsidies to provinces, owing to these two causes. The charges for management are increased by $10,- 438.68 ; this arises from the fact that $13,000 additional will have to be paid to the agents during the next year, aa one per cent, will have to be paid on the i-edemption of a much larger portion of the debt than it was necessaxy to redeem during the current year. The estimates for public ,» ^ h r If I : r works and buildings are increased by $127,772.97. lion, members will remember that during the last two yearn, while a surplus was not antici[)ated, and while, on the contrary, we had to admit at the last session that there would probably be a deficit of half a million, the Minister of Public Works and his colleagues had to resist many applications in respect of works recognized as having great merit because we did not wish to increase the ex{)enditure beyond the income Many of t];ese cUims which we had to reject when we felt we had not the means to provide for them, we feel we are bound to recognize now that we show an anticipated surplus of $2,000,000. In consideration of those facts, and looking to the improvement of our harboi-s, our navi- gation and our public buildings Sir A. J. SMITH — Hear, hear. Sir L. TILLEY — My hon. friend opposite says " Hear, hear." I know he is hoping that his own locality will be considered. 1 am glad to know that he approves of the extension of these great public works. Under these circumstances, I say, the House wLJ^ not be sur- prised, but, on the contrary, will be gratified, to know that the Govern- ment feels itself in a position to increase the expenditui'e on the public works to the extent of $128,000. Then there is an increased expendi- ture of $61,300 for the militia. During the past two years yre have not been able, and did not feel ourselves called upon to add to our debt by appropriating a larger sum than was absolutely necessai v for this important service. It is well known that during last year an , the year previous the volunteers only received, I think, four days' drill per annum. Hon. Mr. CAKON — Six. Sir L. TILLEY — Six, was it 1 I know it was about half they were in the habit of getting. It has been considered desirable and in the interests of the country that ihe sum for drill should be increased. The sum to be expended on ocean and river service is increased by §50,140. This arises from the fact that communications have pas- sed between parties in France and Canada relative to the importance of establishing a line of steamei-s to ply between ports in the St. Law- rence, the city of Quebec and France. It would be an advantage if such a line could be established, and as it has been asserted that the French Government will contribute $100,000 towards the undertakings. I' it vas considered deiirable to ask Parlxameat to place at the dispoaal of the Government $50,000 for the purpose of securing the establishment cf that line (cheers). It may be said that under the present tariff in force in France, the amount of business that may be transacted between the two countries will »ot be at extensive as it would be if more favor- able trade lalations existed between us, but the very fact that the French Government grants $100,000 to ihis line will be a declaration on its part that it is prepared to liberalize its trade relations with Canada, and Canada, therefore, ought not, it appears to me, to resist for a moment an appiicatioa for such a grant ; we have, therefore, asked |j0,000 for the purpose. Then, sir, there has been a growing diflBculty in the lilaritime Provinces with reference to the communication between those provinces and (rreat Britain. At one time we had steamers calling once a month at the port of St. John, and they were well patrenized, but thoy hare been discontinued ; now a new state ef things has arisen. The people of the Maritime Provinces for the past year or two have been turn- ing their attention to the export of cattle and agricultural products and of fruit tu Great Britain, and, from the fact that there was no line of steamers froBi the Maritime Provinces except from Halifax, and the steamers from that port were not exactly the kind i;o do the business we required them to do, we wore compelled to go to the city of Quebec and take the steamers there, adding greatly to the ex])ense of the trans- poi't, and to th;^ loss of the people of thu Maritime Provinces wLo were shipping. Under these cfruuTistauces, and consideriug the iii.portance of the matter, the Goveriiment decided t« ask Parliament to place at its disposal, for a fortmghtly steamer running alternately from Halifax and St. iTohn, to Liverpool the sum of $25,000. There ha;? been a reduction in uome other eitpenditures which makes the actual increase but |)5G,140. I *nce8 to usk Parliament that the sum be char^'ed against iiicovne. The estimated post otlice exi)enditure is in- creased by $91,500. As will be seen by last year's estimates, we asked Cor an increase then, but I am happy to be able to m.y thut while in f I /' ^ . V r f ^ [ V r 1879-80 there wa« a contiderabl© increase in the expenditure on the postal service, ther« \rw» also an increase in the revenue, although not a corresponding increase to the expenditure. During the present year there is an increaaed income expected from that source, and you will observe that the estimate of income mentioned by me a few minutes ago was $1,800,000, which is a sum considerably in excess of any Amount we have yet received from that source. However, these items I have named make altogether $776,944, as against a total increase, including the supplementary estimates, of $884,000. When we come to these items, sir, and ask the House to vote them, we will be in a position to state more fully than I have stated just now our reasons for Asking Parliament for them. PROPOSED CHANGES IN THE TARIFF. Having submitted the income and expenditure of 1879-80, the expected income and expenditure for 1880-81, and the estimated ex- penditure and income for 18818^2, hon. gentleMen may ask if, with the estiraiiited surplus for the prssent year of $2,000,000 and the esti- mated surplus next year of $1,500,000, we propose in the resolutions we are about to lay on the table any g^^^t reduction in the tariff. My answer, Mr. Speaker, is that the propositions that we are now about to submit for the consideration of the Hov.se with reference to the amend- ment of the tariff are mainly for the purpose of placing a number of ar- ticles that are now subject to a 20 per cent, duty, and are considered aind are, indeed, to a certain extent manufacturers' raw material, in the free list. The resolutions also provide for the increase of the duty on some manufactured articles where the Government feel that it is desira- ble that additional protection should ls3 given to those particular indus- tries. There is also a reduction of duty on two or three articles that tire considered to bo manufacturers' raw material, in order to place them in a better position than they were before. There are other resolutions for the purpose of smoc':hing, if I may use the term, the working of tha Act, or, so f V as our Customs' officers are concerned, to remove the difli- •culties which have been found to exist in working out this tariff and in fixing a uniform rate of duty by all the officials throughout the Domin- ion. We have found that varied rates have been fixed by different offi- cials on the same article, and it became the duty of the Government to nee if, by changing the wording or classification of the goods under a 10 different head, they could not remove what I admit to have been an irri- tation and annoyance to importers. I know that last session we re- moved a great many of these, and I trust the resolutions now about to be submitted will remove many more, if not the whole of them. But these resolutions will not materially affect the tariff, except, perhaps, in reducing the amount to be I'eceived, but immaterially. The Govern- ment considered the question whether it was desirable, in the present state of aOairs, to ask Parliament to take tlie duty off eertain goo Is or reduce the duty on others, and ao materially reduce our receipts. After giving that matter full consideration, we considered it desirable, in view of the fact that even at the present, the effect of this tariff, or National Policy, as it is termed, has not been fully developed, and we do not know, as these manufactures increase and grow in the country, whether they will give back through theii- employes an equivalent for what we lose on goods manu Pictured ; we do not know what will be the effect of the rapid extension, — because it is very rapid indeed, of the manufac- turing industries of the country, — we thought it desirable on this ground alone to make no proposition for a large i-eduction of the tariff during the present session. More than that : when the tariff was brought down in 1879, it was stated distinctly that the Government was exceedingly anxious, if possible, to renew the reciprocity treaty of 1854, and as an expression of the feeling of this House, they gave the Government power to reduce pro rata the duty that we now collect upon the products, such as coal, lumber and grain and everythin<» of that kind, in precisely the same proportion that the Government of the United States, or Congress, would think jn-oper to reduce their duties, and even, if desirable, to remove them altogethei". Well, sir, we know that during the last session of Congress, and they have been renewed this session, there were ])etition3 asking the ap- pointment of a commission to confer with the Canadian Govern- ment in reference to this matter, We do not know whether any- thing will grow out of that movement or not. It may result in an a])proach being made to our Government by the United States authori- tiog, but the carrying out of such a policy would result in tho reduction of tho revenue we now receive from coal and otlier natural products, and as tliore i^ a possibility of that taking place, it wo\ild be impolitic for us to ask tho House to reduce the revenue now received. We 11 thought it would not be injurious for us to be able to s1io\t in two or three years that "we had a surplus of two and a half or three million dol- lars. It would not afFoct our credit abroad certainly. These are the reasons which decided us for the present no!: to ask Parliament for a reduction in the tariff. If there is no chance of these arti- cles being made free ; if there is no chance of our natural products having a free market in the United States ; if we find that in addition to the $300,000 required for interest on our expenditure next year on the construction of the Pacific Kaiiway we have a handsome surplus, I need not tell hon. gentlemen that we will be only too glad to relieve the people of taxation, wnether to the extent of half a million or a million dollars, but at present we feel that it would be unwise to do so. ] think from the facts I have "^iubmitted with reference to the state of the revenue up to the present time, facts shown by the papers laid upon the table an hour since, that there can be no question as to the revenue- producing power of the present tariff and its ability to meet all the requirements of the country. THE PROTECTIVE POWER OF TUB TARIFF. It having prored to be a revenue-producing tariff, it now remains to be seen whether or not it has also been a protective tariff. Our Triends oppasite, aa is well known in this House, discussed for some six weeks the tarifT submitted in 187&. They took many and serious objections to many of its provisions; they met us with a statement that the tariff must prove a failure in one or the othei respect, eitlier as a revenue-producing tariff or as giving protection to the manufactures of the counti'y. I desire to ask the House for a few moments to consider, from the evidence we have all had from our every day observations, as we must necessarily from day to day and week to week have been brought into contact with the manufacturing industries of the country, without producing a fact or figure or anything beyond the observation of every hon. member in this House, whether this tariff has not given a groat impetus and stimulus to the manufacturing industries of the country. This tariff has now been in force since March, 1879, and I liavo given its operation careful personal consideration. I have done more : [ have endoavorcKl to obtain reliable information from every part of tlio Ooininion iiH to i\A wortving and as to tiic effect it m pi'Oauc- ing upon ccMtuin industries, as to the now industries created and the 13 •old ones that have been revired, and as to the general impetus it has given to the manufacturing industries of the Dominion. I do not hesi- tate to saj that those ' iquiries have resulted in the most favorable returns and in the strongest possible evidence of success. (Cheers.) I -kno^ that there are hon. gentlemen in this House who will say that I and ray friends are too sanguine upon this subject. I desire to present a few facts for their consideration. I would ask them how it is possible that the trade returns and other evidence presented to us could show such largely increased importation of raw material if aur manufactures had not been largely extended. INCREASE IN MANUFACTURING INDUSTRIES. Let me, sir, in the first place, call the attention of the House to what is, in my judgment, one of the strongest evidences possible of increase in our manufacturing industries. "We know there are certain industries that do not require fuel to carry them on, as steam power is not used, but in a large portion of them steam power is required, — I wish, therefore, to compare the consumption of coal in 1878-79 with the same in 1879-80. In 1878-79 we imported of coal 889,740 tons, and of Nova Scotia coal we consumed 554,603 tons. 1 ascertain this by taking the whole number of tons of Nova Scotia coal sold, and deducting from it the number of tons exported, the balance being the amount consumed in the Dominion. Tliis makes a total of 1,444,343 tons altogether con- sumed in Canada in 1878-79. This increased importation of coal I did not calculate upon. I was not sanguine enough when I made my statement in 1878-79. I supposed that the increased consumption of Nova Sf otia coal would diminish the importation and consequently less revenue would bo collected upon this article. But I find that in 1879-80 we imported 973,778 tons (cheers), while of Nova Scotia coal we consumed 811,719 (renewed cheers), making the increased consumption of coal in that year over the one preceding of 341,154, the increase in Nova Scotia coal being 257,118. That bears very strongly and clearly, to my mind, upon the subject we are discussing, as to the effect of this tai'ifi" upon the manufacturing interests of the Dominion. I desire to give a little further inormation, because I conijider this pretty strong evidence. COTTON. I may say, with reference to the cotton raanuf.ioturei, that they have nvirpg in thf» TTm'forl Sf.^(-/^c. «,,«- 1 $6.52 ; add the old duty, (because I am making the statement under the I M I \ 18 estimate of the old duty), 25 per cent., $1.63, one cent, per lb., $1, and all other expenses of every kind, 35 cents, that brings the price of granu- lated sugar to $9.50 as against an average price during the past twelve months of $9.75, or an increased cost of 25 cents per hundred as between the current price for the year and what it would have cost to itaporfc it under tho^ tariff of 1877. Now, I am also informed, on what I consider, reliable authority, that the yellow refined sugar is put on the market to-day by the refiners and sold at from 14 to 19 cents per hundred lbs. less than it could bo imported from the United States under the tariff of 1878. I may go further, and say that grocery sugar No. 14 now pays ^^cent per lb. and 30 per cejit. duty only, when, under the taiiiT of 1878, it paid 1 cent, a pound and 25 jjer cent. Sir RICHA.RD CARTWRIGHT — No. Sir LEONARD TILLEY — I speak of that class of sugar of which I had a sample here a year ago, a very fair grocery sugar. That sugar is imported to-day at a quarter of a cent, per lb. less than it was in 1878, with 5 percent, acl valorem more duty, but the packages con- taining it are free of duty when brought dir^ctl/ from the West Indies. Therefore, that class of sugar is nearly a quarter of a cent, per lb. less to the consumer to-day than it was in 1878. It is quite true that the ad valorem duty on raw sugars used by the refiners was increased from 25 to 30 per cent in the tariff of 1879, but there should be no complaint by gentlemen opposite if the refiners have to pay that; it does not amount to that, because the practical effect, as there is no duty on the packages as there was in 1878, is that it does riot cost a great deal more than under the tariff of that year. Therefore, looking at, it from this standpoint, if the re- fined sugar cost an avevctge of 25 centb a hundred more, and if yellow sugar of average quality is sold to-day at 17 cents per hundred less than tinder the old tariff, and No. 14 can be had a Quarter of a cent, less per pound, tlien the peo})le who consume sugar in Canada cannot be paying a very large sum over and above what they would have paid had the old tariff been in force. TEE SHIPPING INTEREST. But we have in addition to that an industry createtl which represented $750,000 last year, which is increasing and growing, and will increase and grow, amounting during the current year probably to $1,000,000, 19 and whafis more, the vessels that brought that s'lgar into the port of Montreal (because it was confined to Montreal during the past year) and brought tlie coal there necessary to refine it atnounted to 62,000 tons., What effect had that upon tlie general industries of tlie country ? It had this effect, that while it gave a large inci-ease of revenue to th« port of IMontreal, it gave a largely increased business to that district of the country. But it did more. This fact, that those 62,000 tons of shipping were at that port, led to the shipment from it of a larger quantity of native and foreign products because there was freight at a reduced rate. The competition caused by those 62,000 tons did diminish very materially freights at Montreal last summer and every t«n cents saved on a barrel of flour was so much left in the producers' pockets, and everr half cent reduction in the freight of a bushel of wheat went into the farmers' pockets, as did also every ten cents saved in the freight of a box of cheese, and so with all similar reductions in freights of bacon, pork and other products. By the .operation of this tariff we attracted last year to that port 62,000 tons of shipping that otherwise would not have been seen within it I believe that indirectly, the whole Dominion and especially the West, experienced from it a great and decided advan- tage, but during the present year this advantage will be extended to the Lower Provinces, and with our sugar refineries in operation in Halifax and Moncton, what will be the result? There will be a large increase of trade between those provinces and the Dominion generally and the West Indies ; when our vessels going to the West Indies have a return cargo of sugar and other articles, they will be able to carry away from our ports fish and other products at lower rates, which will give us tlie benefit of greater employment for our own vessels besides. If, then, we should pay 25c. per cwt. more on our refined sugar, the agriculturists of the West and the lumber and fish merchants of the Lower Provinces will have an advantage equivalent or even greater, in that increased trade with the West Indies, reduction of freights and larger exports from the Tx)wer Provinces, including Quebec. NEW FACTORIES. The next point to which I shall call attention is the increase of our manuftictories. Throughout the country we see new factories rising up and new establishments for the manufacture of locomotives and rolling stock, many of which I have had the pleasure of visiting. This shows 20 the increase of enterprise in the country. With reference to one new- industry, the manufacture of beet-root sugar, my colleague beside mo (Hon. Mr. Mousseau) has just handed mo a cablegram from Paris, ■which he received to-day. I see my hon. friend opposite smiling, as much as to say, " These telegrams are very convenient." No doubt they are very convenient sometimes, but pretence is not necessary in this matter, for it is an established fact. The beet-root sugar factories, freed from payment Jof duty for ren years, by resolution of this House have now only two years to run, and the intention of the Government is to extend the period to eight years from July next. The machinery for the factory referred to in the telegram has been purchased in Paris. I come now to the furniture factories, in regard to which I find a considerable increase, though not so large as in some other industries. With regard to locomotives and rolling stock, ihe amount required by railroad companies, and largely by the Govern- ment, has been ordered, and is being manufactured in the Dominion. Look, for instance, at the Grand Trunk Kailway Company alone. Yovi need only enter their workshops at Montreal to see what a wonderful impetus has been given to that particular industry, and in every city you will find similar evidence of the beneficial operation of the National Policy. You will see, moreover, one factory for cars at Oobourg, another at London, and more in other localities, whei'eas under the old tarifi" they were imported from the United States. In the production of agricultural implements the last year or two witnessed a large increase. The makers complain that they do not make as large profits as before, but we find the quantity largely increased. The return for Manitoba shews a great increase in the purchase of Cana- dian manufactures and products since 1872, an increase that is mar- vellous ; in that year the value reached but $390,000, and last vear $3,600,000 worth of manufactures and products of Canada vvere carried hdo Manitoba and the North- West, a large portio >. being agricultural implements, and a new market has been opened for our wares in that country, from which those of American manufacture have been shut out. In the language of a gentleman I met at Kingston in April last, and who formerly lived nt Canada, but now resides at St. Paul, Minn., "our tarift h'l* i <.'i«d his business with the North-West." The boot and shoe industry has increased 25 per cent., both as to the n I \ ;; r 1 1 ^ 21 amount produced and the number of tlie employes. We find them, moreover, \Torking full time, while before they worked but two-thirds time. The manufacture of earthenware is constantly increasing, and that of hardware, including Htoves, shovels and hoes, has received a new impetus. Among the new factories established are two for silks. They weave magnificent silks, and are preparing to make bands and ribbons. Paper manufactures are also increasing in number, and pro- ducing more than ever, wall and colored papers inclusive. We have also an additional paint manufactory on a large scale established in Montreal. The organ and piano industry is largely increasing every- where, and the increased demand at home, which is something marvel- lous, is one indicator, at all events, that times are more prosperous, for such articles are purchased only when people can afford them. Then we have lock and brass works of various kinds, and for the first time we are manufacturing small wares, for wliich we were dependent upon our American neighbors. There are in addition corset fac- tories that employ 500 or 600 hands, arid one ready made clothing estab- lishment employing 900. Soap and other manufactories are increasing steadily, all multiplying the number of workmen with increasing wages. From a careful examination, it is now established that the increase of raw material in value, by the application of machinery, capi- tal and labor, throughout the Dominion, is $6,000,000, and the increased number of persons employed is 14,000, representing with their families a total of 42,000. About $4,000,000 passes to the hands of people engaged in those industries, wliich money is generally distributed. If, of those 14,000, 7,000 are occupiers of houses and tenants, they are building up a new city of 40,000 inhabitants each year, another of 20,000 more, because we do not import half of what they consume, the produc- tion oi the balance giving increased employment to our own people. We are thus practically building up in a year a city of GO, 000 inhabitants, with a capital expended last year in this way for buildings and machinery of $5,000,000 or $6,000,000. We are establishing new manufactories of various kinds apart from other expenditure to the advantage of our people, and all these are the results of the National Policy during the last eighteen months. I would ask the House whether, imder the circumstances, the most sanposition iweaMia( M a nMin ii BMB.i ie:ted my intention of visiting the agricultuml districts. I visited some of them last year, but not as many of them as of the manufacturing centres. Unfortunately for my plans in that respect, three memliers of the Government were absent in England a portion ot last summer. Some of us had to keep watch and ward, and M'ero unable to leave Ottawa as long as we desired. INCREASE IS PRICES. But what do we find? Some few facts are patent and •an not bf< disputed. I know it is a vexed question, and hon. aiembers on both sides of the House argue it from different stand- points, but it is clear that the effect of the tariff has been to increase the price of Hour, wheat and other cereals, and from the most careful inquiry that can be made, I have arrived at this estimate, that flour is increased to the consumer in Canada but 10 cents per barrel. That is the calculation I make. There must be some spec- ulation about it, but this is the most reliable estimate I can obtain. The increase in prices last June and July in Canada was nn- •luestionably caused by the tariff. There are periods oj the year after the harvest when we have a surplus in the market ; when in spring a largo portion has been raanufactm-ed, and owing to the increased de- mands by the millers the prices rise ; when there is a surplus, and when a market must be sought elsewhere for the wheat '^rices may not be materially affected, but at the same time there are periods in the yeai- when the growers obtain a benefit, as they did last spring. With respect to ^-^e, T find from investigation that thei-e has been in pai-ts of t)ie Dominion at least a new inquiry for that article, and that the distillers of Ontario and Quebec, instead of using corn, are asking for and Ijuying rye, giving growers an increased jn-ico as the result of the duty on corn. The duty on corn has increased its production in Ontario, especially in the western portion of the Province, whatever may be said with respect to other portioviS of tho Dominion. AVith regard to oats, it is estimated that the result of the tariff has been to increase the price three cents per bushel to tiio consumer, and, if it is any comfoi-t to hon. gentlemen o))posite, to tho lumber merchant. What did I further find 1 That no nart of the tariff is more acceptable to the agricultural population than the increased ^uty imposed on fruit and fruit trees. Pcraoiis who desired to obtuiir. 23 / ^ fruit in the early season when Canadian fruit was not fit to use, could afford to pay the inci-eftsed duty. In the fruit season, and when we have a, surplus, and we had a large surplus last year, it was admitted that if it kad not been for the duty imposed last year's fruit crop could scarcely have found j)urchaserR, and that though it had to be sold at low figures, yet iho financial result would have been infinitely worse had there been no frotection. With respect to bacon and hams, there is now a protection to the farmer of 25 per cent. I may here say that some of my lion, friends behind me have been urging on the Government to increase the duty on pork. That article is largely consumed by lumbermen, and that is an interest which wji cannot legislate esjiecialiy in favor of, and we wish to tax it as lightly as possi- ble. Wo have not, therefore, seen our way clear to ask to increase the duty on pork at present. I may say that in looking over the trade returns we find that about 19 or 20 per cent, is the present duty on pork. Consider the eftect of 42,000 additional consumers cf vege- tables, poultry, eggs, fish, butter and cheese, and everything that comes into the homo market in the neighboihood of the manufacturing centres. Thoy receive for all the products that maybe considered perishable articles nnd cannot be exported to Great Britain, incr^^ased prices as the result •f the increased number of people employed in manufactures and their p'osperity. OB.JECTIONS TO THE TAKIFr ANSWERED. In 1879 and last year, especially in 1879, very grave objections vera brought against our tariff by hou. gentlemen opposite, and in a very plausible manner. If some of those objections had been borne out by experience, the fact would have had some effect on the Government, but I am happy to say that, after a careful examination, evidence has proved that the feara entertained by hon. gentlemen opposite were without foundation, and that we stand here to-day with our [)olicy vindicated in the face of the country. One of the objections put forward was that the tariff would reduce the foreign exports via Montreal and Quebec and the St. Lawrence by the imposition of customs duties on raw material or upon wheat and Hour and products of foreign countries passingoverour rail way .s ftnd tlirouGih our canal;* to Eurooo= If tliafc could have been establisliod , there would havo been some ground for considering how the fact sliould iunuonce our conduct in the matter, l>ut what are the facta? T glean 24 from the official records that, during the summer of 1878, the open season from May to November, there were exported of foreign products of the vahie of $6,743,771, in 1879 |9,437,727, and last summer $11,148,- 509 via Montreal; The Minister of Customs madearrangements by which the products of the Western States would pass through without let or hindrance, under regulations adopted by the Department, and no incon- venience whatever was felt. Now, let me say here that, in addition to this that, I think, the increased export was due, to a large extent, to the increased tonnage at the port of Montreal. When in St. Catharines in the autumn of 1879, the owners of vessels in the canal there told me that the reduced business on the canal was caused by the limited tonnage at the port of Montreal, and they had either to have increased accommodation there or pay the piper in the shape of high freights, or hold over their shipments until the spring, and I say that any policy which will increase the tonnage at Montreal will relieve this difficulty and give a larger trade to our railways and canals. Another objection was that the im- ports of English manufactures would decrease, while the importation of those from the United States would increase. In reply to that objection 1 will simply read a tabulated statement which I liave in my hand, showing exactly what lias been the course of trade between Canada and England, the United States and other countries resj)ectively since 1874-5. In 1874-5 the importations from Ch-eat Britain were $00,000,- 000, from the United States $50,000,000, from other countries, $8,000,- 000, or 50 per cent, from Great Britain, 42 per cent, from the United States and 8 j)er cent, from other countries. In 1875-0 the figures were : Croat Britain $40,000,000 or 43 per cent. ; United States $40,000,000 or 48 per cent., and $8,000,000 or 9 per cent, from other countries ; in 1 870-7 : Great Britain $39,000,000, United States $51,000,000, other countries $5,000,000, or 41 per cent, from Groat Britain, 53 per cent, from tlie United States, and 5 per cent, from other countries ; in 1877-8 : From Great Britain $37,000,000, United States $40,000,000, other countries $5,000,000, or a percentage of 41 for Great Britaiii, 53 for the United States and 5 for other countries; in 1878-9 the amount from Groat Britain was $30,000,000, from the United States $13,000,- 000, for the great bulk of the imports tliat wero brought into the country in February, 1879, came from the I'nited States, such as grey / m- / m V 25 cottons, refined sugars and a number of other articles ; — in that year we imported from other countries $5,000,000, and the percentage for that year was 38 per cent, from Great Britain, 54 per cent, from the United States, and 6 per cent, from other countries. In 1879-80, we imported from Great Britain §34,000,000 ; from the United States $29,000,000 and from other countries $7,000,000, or a percentage of 48 from Great Britain, 40 from the United States and 11 from other countries ; or, in otHer words, for the first time since 1 874 the importations from England were in excess of those from the United States. The next argument of those hon. gentlemen was that the tariff would create an unfriendly feeling between England and Canada, and damage our credit. Let us see what is the evidence upon that point. I have in my hand a little pamphlet published in England, showing the exports from Great Britain to other countries, and I find that during the last calendar year the exports from Groat Britain to Canada have increased by £1,200,000 or $6,000,000. This English writer shows that our trade has increased with that country instead of showing a mate- rial falling off, as hon. gentlemen predicted would happen under the trade policy of the Government. Then, sir, as to the effect upon our credit, I was able to show last year that our securities stood at 05^ and 96, as compared with 90 and 01 and 92 in 1878, and to-day 1 find that, with the accrued interest of li-, they are l04i and 105, or an increase of 7 or 8 per cent. The hon. gentleman opposite, my ])redecessor as Finance Minister (Sir Richard Cartwright), says, '• That may bo true, but the value of our securities have not increased in the same ratio as those of the United States." Now, on tho 30th of December, 1878, 4A- U. S. bonds funded stood at 100-^ ; in 1880, U. S. U's stood at 115^ and lU'l ; our securities in 1878 wore worth from 89 to 91, while at tho present moment they are quoted at 104 J, a fact which shows an increase equal to that of United States securities. But I desire to allude to a fact of still more importance. In 1878 Now South Wales securities stood lugher in tho money markets of England than any other colonial securities in the world ; thoy wore actually 5 pei cent, in advance of ours at that time. To-day our securities are a little in advanc>J of theirs, a fact which will Hhow the relative credit of tho two countries, though I aJmit that tho increase is largely duo to tho abundance of money ; but at any rate tjiero is tho fact tluit our securities have increased relatively to those of 26 New South Wales 5 per cent, during the last two y.jar.'^. 1 c )nie now to another point, namely, the predicted increase of taxation ur)on the •onsumer. It was stated in 1879 by hon. gentlemen opposite, and ra[>eated last year as well as during the recess, that the effect of this tnriff was to add to the taxation of the people of Canada a sum of $7,000,000, while only $2,000,000 would be paid into the public treasury. I would like to ask tlie hon. gentleman how that could pos- ■ibly be ? I put the question not only to him but to hon. gentlemeji ML both sides of the House. If, say, our imports have been diminished 1»7 $0,000,000, add this to the $71,000,000 which represents the jwiount entered for consumption List year, and we have $77,000,000 as the amount rej)rosenting our importations if wo had not 'manufactured & certain quantity of goods at home. The average tariff for the last year has bsen 20 percent., or one-tifth, which, upon the $71,000,000 is a sum of about $14,000,000 ; the additional duty upon the $6,000,000 (which we will estimate represents the reduction of imports) would be, k* the goods had been imported instead of being made in this country, $1,200,000 instead of the $5,000,000 which the hon. gentleman named. But when I point to agricultural implements, a large portion of the ootton and woollen goods, a large portion of the iron manufactures, and Many other articles with regard to which hon. gentlemen say the tariff LI not popular, because it has increased the price of the raw material and not increased the price to the consumer, then I say but a very small portion of the $1,200,000 is paid by the people of this country as a result of the change ^a the tariff. But as to the contention of my pradocossor (Sir llichard Cartwright) that a tax of $7,000,000 is im- posed upon the people, and that $2,000,000 only goes into the Treasury, I confess I cannot understand it, and I hope that the hon. gentleman will so explain it that it may be understood by the House and by the cotmtry. Mr. PLUMB -- Thoj- tried to explain it in West Toronto last •ummer. Sir LEONAllD TILLEY — Another objection to the tariff was t^iat it would break up the Union by distributing the taxation of the country unequally on the various provinces. In the langungo of My hon. friend from Centn* Huron (Sir Richard Cartwright), the i»«iall('r i)rovinc('s would pay a much Inrg.'r ftum proportionateljp than 27 the people of Ontario and Quebec. The hon. gentleman's syrapathj for us by the sea appears unbounded, and I am sure I thank him for his sympathy, but let us see what foundation there is for it. It would, the hon. gentleman said, break up Confederation by impo.sing unequal taxa- tion ; it would dissever this admirable superstructure which we are all proud of; it would destroy that union which the country as a whole rejoiced to know had been accomplished, and which was in the interests of the whole country. But let us see how this iinequal taxation, during the last year, under this tariff, has been bearing on the different provinces. I have prepared from the trade returns some tabulated statements that I desire to draw the attention of the House to, and ■which show that if the tariff has boniemore heavily upon one section of fclie Dominion than another — and there has been, taking all things into consideration, not much difference — it appears to have borne more koavily upon Ontario and Quebec tiian u]ion the smaller provincas. The increase in the rate of duty on joods entered for consumption in the several provinces, under the new tariff, is as follows : — - Ontai-io and Quebec, 376 per cent., Nova Scotia, 2-55 per cent., New Bruns- wick, 2-18 per cent., Manitoba, 2-12 per cent., British Columbia, 5-08 pel- cent — British Columbia seems to have liad in this matter her share ; I will explain briefly one of the causes that led to that ; perh'jps it may be remedied this session to some e.xtent; - — Prince Edward Island 2-21 per cent. In the Province of Quebec last year a large portion of the revenue was received on sugar refined. In New Brunswick ^45,000 worth less sugar was entered than itt the year previous. Instead of being imported from the IPnitsd States, it was imported from ]\rontreal, and taking into account the fact that the imports of other provinces were also reduced, the percentage paid by Ontario and Quqbec will be reduced. The average of the total increase was 3. GO per cent. I now come to Uic statement made in the trade returns by the hon. Minister of Customs, showing tho rate of taxation per head of the population in tho different provinces, based on the population of 1871. Taking Uie population of 1871 as the basis gives a higher rate per head than woidd our j)resont poi)u]ation, but applying tho same rule to all •inces, the rates will l)e the same. in. Ontario a P Q' 1?<7B-7D, the rate was $3.51 per head and for 1879-80 .«?4.08 j^er head, an 28 incvease of 57c, arising largely out of the increased duty paid on sugar j in Nova Scotia for 1878-79, the rate was $3.05 and in 1879-80 $3.14, an increase of 9 cents ; in New Brunswick for 1878-79 the rate was $3.67 and in 1879-80 $3.05, showing a decrease of 62 cents ; in Manitoba the increase was 78 cents ; in British Columbia, though the percentage on the imports was greater, the decreased rate per head was 68 cents ; the rate of Prince Edward Island decreased 8 cents and the average increase for the whole was 33 cents per head. Instead, therefore, of the smaller provinces paying more in the shape of percentage per head of the popula- tion than the larger provinces, it will be seen that, even making allowances for distributing tlie sugar duty collected in Montreal over all the provinces, the amount paid by the smaller provinces is less, if I except British Columbia, which, according to one mode of calculation, pays a higher percentage, and, according to the other, has the advan- tage. If that be the case, the tariff is not calculated to break up the Union on that head. My experience has been that Ontario and Quebec have always been willing to deal liberally with the smaller provinces, and I believe that, no matter what party may be in power, they will always continue that policy, so that they need not be alarmed with reference to the operation of this tariff. In the next ])lace, it was said the tariff was going to destroy the shipping industry. Well, I know we cannot legislate very materially to protect that in- terest, but I will tell you what we did do : we imposed the taxation in such a way that the shipping industry would not feel it, but would be in a better position than before. I have here a return of the draw- backs paid from December, 1879, to December, 1880, to the different shipbuilders, showing an amount paid of $60,001.33. In the whole of this return you will find that while 75 cents per ton is given on the best class of shipping, there is but one application asking for a re- turn of the whole duty ))aid, that amounts to one dollar per ton, whereas before there was a certain amount of duty that had to be paid and there was no drawback. 1 am willing to submit that statement to prove beyond doubt that the shipping interest of the Dominion is to-daj in a better position than under the former tariff. The position of tha lumber interest 1 have carefully gone into. I have made a calculatioa to show what it costs to produce 2,000,000 feet of logs, including in the calculation the feed, oats, pork and everything of that 29 kiud, then I deducted the reductions in duties where the duties have been reduced, and added them where they have been increased, and the net increase does not amount to one per cent, on the cost of production of 2,000,000 feet of logs when placed at the tail of the mill, while on the imports the average increase is nearly 4 per cent. When the friends of the lumber interest presented their case pretty strongly with reference to the duty on pork, I did not feel that duty hurt them very much, especially when the rate of duty on imports generally was increased 4 percent. The tariff had to be increased to meet our deficits. Every in- terest w \s bound to pay its share, but feeling that we could not protect the lumber interest, we felt bound to touch it as lightly as possible. It drives the people out of the country, they say. Well, sir, I think the exaggerated statements aboi.t the exodus are pretty well exploded ; I think, after the articles we have read in the Opposition press on this subject, tliat we shall hear no more of that. The hon. leader of the Opposition the other night, when pressed, referred to a speech that I de- livered in Toronto. I said in that speech, and 1 repeat it here, that there has been an exodus. Still hon. gentlemen opposite say tiiat we have been discussing this matter t» show that there has been no exodus. We have never said there had been no exodus ; what we say is that there has been an enormous and unjustified exaggeration of it. I am not surprised that the American authorities should strive to lead away the immigration from Canada to the United States, and I doubt not that some of these persons have been paid by the railway companies of the United States to make these statements in order to lead people from Canada to the United States. What are we to think when we find a leading member of the Ojiposition and the hon. leader of the 0})position himself taking up these statements, and when wo find the ex-Finance Minister, after the hon. Minister of Agriculture had refuted the statements, replying that these were obtained from official authoi-ities in the United Stales, and that he himself had made inquiries since they were questioned, and found that they w.n'e reliable 1 It is to be regretted that leading genJemen in the Opposition and the leading members of the press of the 0[)positioH should, during the last twelve months, have thought it necessary, in order to damage this pulley and tlio Admiuistiiitlon, to u»ak»3 statements and to publish statements to the country thai cannot now be verified or sustained. If 3C the object was but a petty victory at some election, I feel that it would be indefensible. When at Stratford last autumn I took up the etate- ment made by the ex-Finance Minister with reference to this emigration, and stated that I had iC from good authority from the Minister of Agriculture, that by the Grand Trunk, the principal railway, the whok number of through passengers from all quarters was only 53,000, th« organ of the hon. gentlemen at Sarnia stated that I had misled the people in a manner unworthy of a man occupying my position, and called upon me to establish what I had said or to stand as a public man who had made a statement that was not true. Now, it appears that the statement made by the Opposition was not at all warranted. But there has been an emigration, and why was it 1 It was from this cause : the United States had become pros- perous a year or two before we had introduced this policy, and before wo had begun to feel its effects here ; wages had increased, strikes were or- ganized, and contractors came into the Dominion and held out induce- ments to our people to leave Canada, and it was natural that they should not resist them— the depression of the previous five years had produced such an effect, that, although this policy was inaugurated, it did not, as its opponents said it should do if a success, restore by magic, as it were, all the industries of the co'uitry to a condition equal to that whick it took the people of the United States twenty years to reach, and whick had the etTect of leading our people away where we had not the power and the means of inducing them to stay at home that we have now. But happily we have evidence that tJiey are returning to the country. I know many manufacturer who cannot obtain men enough, and while there has been an ei^odus, the people who left us are returning, and with them are coming many others in search of employment in thi» country. Just here I may refer lo a new objection raised by the hon. member for South Brant (Mr. Patorson) the other day when he referred to the diminished exports. Why, sir, to my mind the diminished ex- ports last year, as compared with 1878, are an evidence of the improved prosperity of manufactures. Some hon. members — Hear, hear. Sir LEONARD TILLEY — Yes, sir, they were driven out of their own market in 1878 by their compfihitor^ from the United States, and they had either to find a market abroad or close up their establishment, 31 ' { and I liavo no doubt that in many cases they preferred making a sacri- fice to doing that. The hon. gentleman said that there was $1,200,000 difference between tbe exports of manufactures in 1878 and thos» in 1880. Mr. PATERSON ^Brant) — A decrease of $885,000. Sir LEONARD TILLEY — $885,000 was the decrease, of whiok $700,000 odd was the sale of ships. What was the fact? In 1873, 1873, and 1874 our shipping industry was most prosperous ; many men wlio had means and many men who had not much means, but had credit, invested in ships, but down to 1873 the trade was decreasing year after year, and in many cases these ships were yielding no profit, and men on the other side of the water who had mortgages on the ships, finding that there was no probability of their being paid, came down to Nova Scotia, New Brunswick, Quebec and Prince Edward Island in 1878, and compelled many ship-owners to close up their accounts and transfer many of their ships. Then a large number of vessels in 1878 were sold to Norway. Under a provision of the Plimsoll bill, our ships, detained at Liverpool or some other English port, had to submit to regulations which were not im- posed on foreign vessels, and I know of some parties who transferred their ships to Norway in order that they might not be subject to th« operations of the Plimsoll bill, and I have no doubt that a great many of the sliips said to have been sold to Norway were transferred for that purpose. I admit that in 1880 the tonnage of ships constructed in Canada was less than that of 1878 ; wo know the reason : there is less demand 'or wooden ships, because iron ships •die taking their ph>co, and if there is anything demanded of the Government and Parliament of . 's country, it is that they should devise some means by which the shipbuilders and mechanics formerly engaged in the construction of ships in this country may be employed. I refer to this subject just now because my hon. friend endeavored, before we had started on our march, to make a flank movement upon us, which I am happy to say did not succeed. Mr. PATEFtSON (Brant) — It is because you wore so late ia delivering your budget speech — sixty-nine days up to the present. 32 Sir LEONARD TILLEY — That is sufficient apology ; the con- sequence to the hon. gentleman might have been serious had he not delivered himself. Mr. PATERSON (Brant) — If the hon. gentleman will allow me, I will state that in the 35 articles of which there has beea a decrease ift the exports, ships are included to the amount of some $700,000 ; but in the other articles there is a decrease in our exports of $733,000. Sir LEOiVARD TILLEY — I looked into that matter last night, taking the exports of the manufactures of Canada for 1878, and those for 1880 ; in both cases he included ships. It made over $800,000 taking the whole of the exports, and if we take the ships out it made a difference of only about $100,000. GENERAL PROSPERITY OF THE COUNTRY. Now, I desire to approach a question in which we are all interested, and that is the general prosperity of the country. I do heai' occasionally some of our friends in the Opposition saying, " Oh, well, times are better, they are improved, but then the National Policy has had nothing to do with it." I thank them for that, because it is really something for the country to have hon. gentlemen opposite say that times have improved in Canada. It has been a long time since they have done that. Now, I have some few facts before me which I think are calculated to establish pretty clearly that times have improved. Lock at our commerce. In 1878-79 vessels inward and outward amounted to 6,088,550 tons ; in 1879-80 they Avere 6,786,000 tons, an increase of 700,000 tons, while in the latter period there were 112,525 seamen against 104,039 in the former period. We hear some hon. gentlemen say, " What has that got to do with manufactures 1 " As I stated before, 100,000 tons of that increase was due to the importation of coal and sugar alone, the direct result of the restoration of the refining industries. The total exports for 1878-79 were $71,491,- 000, those for 1879-80 were $87,911,600, or an increase of $16,420,000 ; the annual average excess of imjjorts over exports since 1867 amounts to $20,000,000 a ^'ear ; last year th« evcess of exports was $1,451,711 — the fii'st instance ot the kind in the history of Canada. That is due to a certain extent to two causes : first, because we increased the value of raw materials bv manafacture bv SG,000>000. which diminished the value of the imports by the same sum ; then we increased the exports, 33 due pM'Llj, I admit, to an abundant harvest, for which we have great reason to be thankful. Then, with reference to the coal ir.terest, as I stated l)efore, tlie coal producers of Nova hcotia sold in 1 378-79 088,624 to IS, in 1879-80, 9U,6]5 tons, or an increase of 255,00(t tons ; in British Columbia last }ear they oxpurtcd 30,738 tons more than tho year before ; increased production in Nova Scotia and British Co umbia for the last year was 286,729 tons. Then there is an increase of trade with the West Indies from $1,033,8 19 in 1877-78, to $1,252,429 in 1878-79, and .|3,1--)1,75-!- in 1879-80. The imports from China and Japan were $383,676 in 1877-78, ,$-148,962 in 1878-79, and |!893,. 911 in 1879-80. Now we come to some other fVicfcs which are a test of the condition of the country ; for instance, the value of the stocks of thirteen banks of the Dominion on the 1st of February, 1879. The paid-up capital then was $38,465,864 j the value of the rates at which they were then sold was $38,921,015 ; the value on the 1st of February, 1881, was 53,237,168, or an increase of $14,316,153 on the $38,000,000 of bank stock in the two years. The deposits in the Dominion banks, taking them altogether from December, 1878, to December, 1880, not in- cluding Government deposits, were, in 1878, $66,406,516 ; in December, 1880, they were $79,239,416, or an increase of $12,832,900. The deposits with the Dominion post offices raid in the Dominion saving banks for the fiscal year of 1878 amounted to $8,998,113, in 1879 $9,846,982, in 1880 $11,688,356; on the 31st of January,188i, they were $14,730,- 594, an increase of $5,732,481 in two years in the savings of tho people, in addition to tho $12,832,000 of additional deposits in the banks, making altogether $18,500,000 of increased deposits. Then we will take tho raceipts of Canadian railways : in 1879, 3,722 miles of road yielded $15,789,101 ; in 1880, 3,744 miles yielded $21,241,756, or an increase of $5,452,655. Hon. Mr. IMILLS — Is that the local traffic or the total traffic t Sir LEONABD TILLEY— That is the whole traffic. A portion of that is due to the distribution of the sugar that was refined in Montreal. Before it came in largely by the Niagara bridge, they did not carry it so fa.', but when it had to go from Montreal to all parts of the Dominion, tiiey got something extra out of that, too. I think that with these facts before us wo will be prepared to admit that the country is in a prosperous condition. We do not claim all that for the National 3 • 34 Policy, oh no, but 1 think that the National Policy has had a good deal to do with it, in the first place by giving confidence to the people who had their capital invested in Dominion industries. Even on the 14th of March, 1879, the day after the new tariff was adopted, there was increased confidence on the part of every man who had capital invested, and if you travel over the Dominion to day, and are brought into com- munication with men of all classes and all branches of business, they will tell you that business has vastly improved. We have few losses now, whereas we had numerous bankrupbcies before. In conversation the other day with a large importer doing business at Montreal, he said, " Last vear we did an enormous business, and we lost but $40 in bad debts ; everywhere w«i have prompt payments ; money is more abundant, business everywhere is better, and the N. P. has had a good share in bringing about these improvements." TAXATION. Now, there has been a good deal said about the increase of the expendi- ture and of taxation upon the people of Canada since 1874. That was the burden of speeches made last summer when elections were being held, and last autumn, I think it was my hon. friend from South Brant (Mr. Paterson) who stated that this Government was very extravagant and was ruining the country, and I think that my hon. friend, the late Finance Minister, stated that on the return of the present Ministry to power, the expenditure began to increase. " You may look for a large increase," he says. I should not wonder if in 1883 we should have an expenditure of $28,000,000. Last session the hon. leader of the Opposition went out of his usual spher«;, and made an elaborate statement of our financial affairs. He apologized for doing so, but it was not necessary, as he handled the subject in a very able manner. Still, perhaps, his attention had not been called to a few figures I am now about to give him on this sub- ject. The taxation necessary to meet the expenditure from 1873-74 to 1879-80 may be stated as follows :— We may take this $2,000,000 of surplus, as wo are estimating what is necessary to meet the expenditure of the country in the shape of customs and excise ; we would take out that $2,000,000, because we are not spending it. If we had a deficiency of $1,000,000, we would have to add the million to the amount collected from customs and excise, because we would have it \ I 4 \ M y> 4 \ 35 required it to meet the expenditure. Tlieu I take tlio increase of popu- lation under the census of 1871 ; it was about 12| per cent, between 1861 and 1871, and I estimate it at 12J per cent, between 1871 and 1881 ; 1 divide that by ten, adding one-tenth to each year from 1871. Taking money necessai'ily collected from customs and excise for the purpose of paying the necessary expenditure of tlie country, we find it to be as follows per head for the population : — 1873-4 $5.01 1874-5 5.07 1875-C 5.22 1876-7 4.82 1877-8 4. 71 1378^9 5.02 1879-80 4.87 And under the estimated expenditure of the present year (1881) $4.98, as against $5.22 in 1875-6 and $5.07 in 1874-5. It must be borne in mind that between 1873-4 and the time when the present Government came into power our debt was increaseJ $40,000,000, and during the last two years $18,000,000 for railways and canals was added, for which we ai'C pi-oviding, Tiotwithstanding that it was but $1.87 per head of the popvilation last year, and it is estimated this year it will be but $4.98 ; this is a matter I have gone into so carefully that I am satisfied I am correct, but, of course, it is quite open for my predecessor, the late Finance Minister, to show that I am wrong with reference to this matter, if my statement is erroneous. Sir RICHARD CARTWRIGHT— What do you hold the popu- lation in 1881 will be 1 Sir LEONARD TILLEY— If there is any error it is in favor of mv hon. friend, because I divide by ten, and you v/ill see that at this same percentage the increase would be larger in the last year, while we give him the benefit of the 1 1 per cent, from the commencement. THE DOMINION DEBT. Now, as we are entering upon a great work, and I feel one whiah the country will sustain this House in undertaking, it is necessary that we should see how the debt of the Domiaion of Canada stands to-day, and how it will stand when that work is completed, as compared with the debts of other countries and the comparative rates of taxation. I 36 have Q'jiiiaia*d iufti'iUAtiou tribli rftfertUQd W Uic d.duix of Hiq (iiffisrojut Australian colonieg for tb" purpose of oorupariaoii. The following is tha stateaunt : — G*]il« por ksad of thtt populatiom of th« foilowmg «»uatri0>, Juii« 3d, lS7f, ««4 tax** per head for the same year :— Debt. Taxation. £ e. d. £ s. (L New South Wales 20 6 10^ 115 Tjj^ Victoria 22 5 10 119 ^ South Australia 2r> 9 2 1:; Queensland 46 IG 2 18 11^ Western Australia 12 11 10 IJ 1 7^ Tasmania 15 17 8 2 2 G iiew Zealand 5113 ?>\ 3 4 4 Canada, gross debt 9 7 2 1 71 Do. not debt 6 14 IV If tlio engagements in connection with the Canadian Pacific Railwtiy should mature during the cun-ent fiscal year, the revenue of the year would be found to be sufficient to pay the interest on the debt, includ- ing these liabilities and all other charges upon the consolidated revenues, and the not debt of the Dominion would not exceed £9 Os 4d per head of the present population, aiid the taxation for the year would not exceed .£1 2s 2d, or less than one half the average taxation of the Australian colonies. Now, that would not justify extravagance on our part, but I make this statement to show our people that our taxation will only be one-half when that work is completed of what the average is in those Australian colonies, and that, under those circumstances, with our country in its present prosperous condition, and with a certainty of a continuance of that prosi)erity, they need have no tear of the future. Some gentlemen may say bank stocks have increased in value because of the good harvest. That would only produce temporary results, but they have increased in value because the assets that the baiiks held were made more valuable by this policy, which is giving an impetus to the tradfl of tho whole country, and if wo may judge from the improvement visible in the last two months, since it has been known that there w \h a certainty of the Syndicate taking the Pacitic road ofl' our hands and coustruccing it rapidly, that the liabilities of tho country in connection with this undertakin<5 wore fixed, and that this road would be completed i ' I ^ / \ i 7 f« « / , \ \ b 4 37 wifchki ten yeai-s. TJbat fact, in couneotjioii wiiL t,b« Katwnjal Policy, had much to do in increasing the value of stocks and of real and personal property everywhere, and giving a hopeful feeling to th« people throughout the lengthand breadth of the Dominion. A BRIGHT FUTURE BEFORE THE COUNTRY. It is said we on this side of the House are sanguine, and that 1 am an exceedingly sanguine person. I will not undertake to prophesy, but I ask the members of this House and the people generally to look at the state of trade and our prospects, and say if they have ever been more ho])e- fid than at present % I firmly believe, although we have not a high pio- tective tariff, that by a readjustment of our tariff from time to time for tlio encouragement and development of the resources of the country and with our vast and fertile belt of lands in the North-West, there is reason why we should be hopeful and why the most sanguine expectations of tlio people of the Dominion should be fully realized. I feel, standing liere and speaking as the representative of the Government, that we liavo ample pi-oof and evidence to vindicate us in the policy that we have adopted, and that the gentlemen who support us in thisJ House (and it is as much their measure as ours) will be vindicated by tliose v/ho sent them here. Having heard the leader of the Opposition say, a few nights since, that he would go back to the tariff of 1878, I would prophesy this (and it is the only prediction X will make) : Lhat if the hon. gentleman continues to entertain these views and propounds them at tlio elections of 1883, this wave of prosperity that is passing over this country will submerge him and the gentlemen acting with him who seek the destruction of this policy, and it will be fatfd to them as a party. They may patriotically feel that it is their duty to do it, but the conscquencee will, nevertheless, bo as certain. THE TAKIFP RESOLUTION!. In committoo, I propose to submit some resolutions, of which th« foU lowing is a summary : — STiTOrSIS OF TARIFF BH30LUTION8. ScheJide A. — DutiahU Oooda. Agricultural Implements — Mower und r«ftpcr knives to bo added as parts of department ; rulei, same M now. Ikx)kj— Printed mftttwr not enmnoratoil to bo added nt snmc rnh\ ;P per cent. Britannia Metal— In pigs and bar*?, 10 per cent. fl.B » t, ' | i .i ! JRll B HiJ;g|l ! Hii-i ? 38 Manufactures of— Not pkted, 20 per cent., now altwed to 20 per coat. Cocoanuts — Pieaent duty, $1 per hundred, when from place of growth, to be 50c. Cordage— To inchulo Manilla mouline, 20 pqr cent., being plentifully made in Canada. Cotton and Manufactures of — Amendment intended to make white or dyed jeans, coutilles, cambrics, silicias, etc., uniform rate 20 per cent.; some now 2c. per square yard and 1 5 per cent. Cotton, over 3G inches wide, for oiled window blind manufactures to bo 15 per cent. ; now 2c. per square yard aijd 1 5 per cent. Clothing, of any material not elsewhere specified, to be uniforui duty 'JO per cent.; now according to material. Glass and Manufactures of— "Word '■ moulded '" inserted, and words '-or fruit', taken out to make item plain, and side lights and head lights added at 30 per cent.; the latter now rated according to material, and sometimes not properly rated. Gun, Rifle and Pistol Cartridges — To be uniform at 30 per cent. ; now rated fU'cording to material . Grain, Flour and Meal, now specific duty, to be 20 per cent, upon appraised value when damaged by water. Iron and Manufactures of — Axles, rivets and nuts to pay same duty, whether of iron or tteel ; rolled beams, channels, and angle and "T " iron, now 15 per cent., to be reduced to 12J per cent. ; wrought iron tubing, now all 15 per cent., to 1)0 changed and make all of two inches diameter and under, 25 per cent. Chain Cables, over X inch, now 5 per cent., change size to read over ^^ of an inch. Laces, Braids, Fringes, Cords, Tassels, now various rates according to material, to be all 20 per cent. Lead, Old and Scrap, to be 40c. per 100 lbs; pigs, bars, blocks and sheets, to be COc. per 100 lbs ; both now 10 per cent. Leather— Kinds now dutiable at 15 per cent, not well defined ; ileui changed, and kinds more clearly specified, but duty not changed. Licorice Root— The root was inserted here in error, it is in the free list, and is to bo expunged from the dutiable item . Marble, Finished, now 25 per cent., to be 30 per cent. Musical Instruments, except PianoB and Organs, now rated according to mate- rial, to bo all uniform duty, 25 per cent. Oil — Lubricating, now often difficult to determine duty, being of mixed mate- rials to be 26 per »ont. Paints — White lead in pulp, not in oil, to bo 5 per cent. Ribbons — All kinds and materials to bo 30 per cent, ; now different ratec, according to materials. Oilcloth for Floors, vtv. — Wording of item changed to avoid diBcrepancies iu rating, but duty not changotl, 30 per cent. ^ 39 ^ Platedware— Cutlery, plated wholly or in part ; specified in item to make it plain ; duty not change , Plaster of Paris— Ground, not calciaed, now 20 per cert., to be ppccified ; 10c. per 100 lbs, to avoid difficulties in valuation. Printing Presses — Now 15 per cent., to be 10 per cent. Silk, in Gum— Item changed to read " or spun not more advanted than sin- gles ;" this to favor ril)bon manufacturers. Spirits and Strong Waters— To include medicinal elixirs and fluid extracts and wine preparations at $1.90 per gallon, now difficult to rate ; makes matter plain. Steel— Free until 1st January, 1882, extended to 1883. Canned Meats, Fruits and Tomatoes— Specific rates of duty to include in the cans, and weight of cans to be included in weight for duty ; this has been estab- . lished by Order in Council, and acted upon in the past. Satins of all kinds to be 25 per cent ; now Various according to material of chief value. Screws— Of any materials not elsewhere specified to be 30 per cent ; wood screws are now 35 per cent, and other various rates according to material. Shawls of all material, except silk, to be 25 per cent. ; now various rates. Slates— Roofing slates, now 25 per cent., to be specified at 80 cents and SJl per square . Sulphuric and nitric acid, combined, to be 20 per cent., this is so now under Order in Council. Telephones, telegrnphic instruments, electric and galvanic batteries and apparatus for electric lights, to be 25 per cent. ; now rated according to material. Umbrellas, parasols and sunshtules of all kinds and materials, to be 25 per cent. ; now rated according to materials. Velvets— Silk, to 1- :!5 per cent. ; now 30 per cent. Velveteens and cotton vclvots, to be 20 per cent. (icruianand nickle silver— Manufactures of not plated, to be 25 percent.; now- uncertain. Wincies— Not more than one quarter wool, plain and twilled, all widths, 20 per cent. ; checked, striped or fancy, not over 25 inches wide, 20 per cent. ; checked, striped or fancy, over 25 and not over 30 inches, 2 cents per s