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 <!..*;.. 
 
 Principles upon which the Statomont of iflKritS^f June 
 30, 1867, is to be revised in preparation for the 
 Arbitration between Ontario and Quebec. 
 
 (1.) Wliere items appotir upm both skies of the statement of afTnirs, which arc 
 clearly only parts of llie same account, in which the same party alone is inleiested, the 
 balance only is to be counted as an asset or liability, as the case may be. 
 
 (2.) Of the Debimturcs issued for the Aylmer Court Hous:', $19,674.97, and the 
 whole i$'i,955.0'J issund for tlie Cjurt IIjusj Kim iMr.iska, are only guaranteed by the 
 Province of Canada to the extent, that tlie local tax callected sliall bj applied, as far as 
 it goes, in the payment of ^inlerest and redemption of the principal. These, with ;h3 
 corresponding accounts on the other side, are to be struck out of the Statem -nt of Affairs, 
 the responsibility of collecting the lax and applying it being transferred to Q'^ebec, with 
 the proviso, that if at any time lureafter the government of Quebec shall not collect this 
 tax or apply it according to law, and the Dominion is called upon to make good the 
 guarantee of the late Province, any sum so paid by the Dominion, shall be deducted from 
 the next payment of subsidy to Quebec. 
 
 (3.) IJebentures to the extent of $183,000.00 were issued, under an Ordinance of 
 Lower Canada, for the Montreal Turnpike Trust, wh'ch were guaranteed, principal and 
 interest, by the Province, but the Trust has always paid its interest punctually to tl;e 
 holders. These, with llie corresponding account on the other side, are to be struck out 
 ol'tln Statement of Affairs, i)ut wit'i the proviso, that, if at any tima hereafter tha Dominion 
 is called upon to niaki; any piyinent under the guarantee of the late Province, a similar 
 sum shall be deducted from the payment of the subsidies of Ontario and Quebec, in 
 su3h manner and in su?,h proportions as the Arbitrators may award. 
 
 (4) Similar Debentures to the extent of $481,426.67, the interest upon which is 
 regularly paid, were issued by (he Montreal Harbour Commissioners, and they are tr • 
 be treated in the same way as the above. 
 
 (5.) The investments for Trust Funds are to be deducted from the capital of the 
 Funds which are invested in them, and the unpaid interest, which has been allowed to 
 the Funds and charged against the Quebec Tuqiike Trust and the City of Hamilton on 
 these investments, are to be similarly deducted froin the corresponding Income Funds, 
 the investments themselves with the coupons being handed over to the Provinces 
 interested in die Funds ; but, as Ontario and Quebec have a joint interest in the Com- 
 mon School Fund, the investments for that Fund and the acc^rued interest thereon must 
 be handed over to Ontario and Quebec conjointly, to be dealt with by the Arbitrators. 
 
 (6.) The following lialiililies of \\w. \\\\v E'rovince, in which Ontario and Quebec 
 arc interested will be paid in Cash to the proper parlies as they may be called for, viz : 
 
 Court Houses, L. C. 
 
 Montreal District Council. 
 
 Municipalities Fund, U. C. 
 
 U. C. Urammar School Income Fund. 
 
 U. C. Improvement Fund. 
 
 Com|)ensalion to Seigneurs, (the arrears). 
 
 Township Indemnity. do. 
 
 (7.) U|)on the following liabilities the Dominion will pay .5 per cent semi-annually 
 viz : 
 
 Common School Fund. 
 
 U. C. Grammar School Fund. 
 
 Superior Ediieation Fund, L. ('., including the Superannuated Teachers 
 
 F'liid and the Xoriiial School Building Fund. 
 C. Building F^und. 
 
 
 (I?mJ.~^ 
 
2 
 
 (8.) Upon the following liabilities the Dominion will pay 6 per cent semi-annually 
 until further legislation : 
 Compensation to Seigneurs, (the capital). 
 Indemnity to Townships, do. 
 
 (9.) Tlie following Trust Funds will be retaincul in the hands of the Dnininion, paying 
 all legitimate chargt's and allowing 5 per cent on the bidanees, until all ehiirgcs wliiiti 
 may by law be payable out of them have fallen in, whin the aeeuintdaled capital of 
 the Funds will be |)aid in cash to the Municipalities Funds, U. C. and L. C, viz : 
 Uneommuted stipends and Widows Pensions, U. C. 
 Do. do. L. C. 
 
 (10) The account " Crown Lands Suspense Account" is to be struck out of the 
 the Dominion Ledger, each Province being responsible for satisfying any claims again>t 
 eacii, either in money or in land, the Arbitrators deciding how the responsibility is to 
 be appoitioncd. If Ontario or Quebec shall fail to satisfy any just claimant, either in 
 money or land, the Dominion will pay the claimant and charge it against the next j)ay- 
 ment of subsidy to tlie defaulting Province. 
 
 (11.) The Sinking Funds ol the Imperial Guaranteed Loan, and the Consolidated 
 Canadian Loan will be deducted from the gross liabilities, at their par value. 
 
 (12.) Of the securities held in tin; Consolidated Fund Investment Account, the fol- 
 lowing pay their interest regularly, and are to be deducted from the gross debt at their 
 par value, viz : 
 
 Montreal Harbour |,21l,2CG.68 
 
 Montreal Turnpike Trust G7,2()0.()() 
 
 Town of Cobourg 4l,*9b.2t 
 
 City of Toronto 18,883.00 
 
 $312,117.92 
 The following are railway securities and will be treated like other Railway Debts, 
 the decision in respect to w!ich is at present reserved, viz : 
 
 Grand Trunk Railway Honds $213,10(5.33 
 
 Northern Railway, " 213,333.33 
 
 $186,739.66 
 The following arc doubtful and will be treated in the same way as the debt of the 
 Bank of Upper Canada, which is at present reserved, viz : 
 
 City of Hamilton Coupons $22,218.89 
 
 Quebec Turnpike Trust Bond 20,000 .00 
 
 M'Gill College Mortgage 17,990.00 
 
 Lord SelMrk and Boulton Mortgage 13,900.00 
 
 Boulton, do 9,828.00 
 
 Markland, do 3,882.25 
 
 The Bank of U. C. Stock 750.00 
 
 $120,599.11 
 
 The remaining item 8 I8,l£0.00, represents an amount advanced to the Bank of 
 U. C. upon the security XI 1,000 stg. of Canadian 5 |)cr cent bonds. Tne Bank having 
 failed to redeem them in the timt^ specilictl, these bonds are the |)ro|)erty of tin; Do- 
 minion, and may be deducted from the gross debt at tln'ir par value of $53,533.33. 
 
 (13.) The cash and available banking accounts will be deducted from the gross 
 debt at par value, except tlie following : 
 
 Cash Suspense Acronnf, composed of silver and other unbankable funds, will be 
 deducted at a value to be placed upon it by the Treasury Board. 
 
 Croirn Lmi'ls Dr/mrlinenl will Ix- struck out of tlM- Statement of Allairs of the 
 Dominion, and Ontario and Quebec will be responsible for the liabilities, and collect 
 the debts due to the late Crown Lands Department, subject to such arrangements as 
 may lie made by the Arbitrators. 
 
 The statement of atlliirs of the late Province of Canada, .lune 30, 1867, as revised 
 and analysed in accordance with the foregoing rules will stand as follows : 
 
^TATEMEXT of affoh-H of the late Province nf Camtdi Jane 30 1807, as 
 reilsed and auuhised in accordance icHh the accoinpani/in;/ report. 
 
 L I A U I L 1 TI E S . 
 
 T,' , 1 1 i 402,734,7'.)". 6'i 
 
 Piicc-t <lclit • ■ •• ■,- ri 
 
 Imliivet .l.'l.t );h4.S,4.>r..Ct 
 
 .L-.ssMnniivi.n'uni|.ik.. 'IVust «il,H!S,(IOl) 00 
 
 A|,,,,i,....,i ihii'I'ciiii 4SI,4li'(.07 
 
 OmulUo,,.:" Ayl,M.:;.;nilKa.nn,,n..ka 2S,li21..U7 (WWU 150,400.00 
 
 f'opviijtht .hity , ,-':!['!'- 
 
 I'ul.li.- \Voil< ^1M■.■illl acnmiit .' ',. ■ ., 
 
 Indian r.m.l.... ],.s|0,l lO (,l 
 
 Mi<.'i'llani'()u« lia'iilitics 
 
 ('(init lliiiisis, 1,. (J 
 
 McintriMl |ii.->tric^ roiniril 
 
 Aliniiiipalilic.-^ rnml, I'. ( ' • ■• • — • — 
 
 L'. C. (Jraniiiiai' Slmol Income Kiniil f.:!f>. Il'i7.('i.) _ _ 
 
 la'ssCilj-iirilamillnn (iiirl) niipahl inliTcst I.S.lllK).(K) 1\10..Ijj 
 
 ],82u','.ty7.02 
 
 4.0(1 1.-_'0 
 
 ;i.',ii2.o.'» 
 
 SO-VMli.Oli 
 
 5,1S0.04 
 
 7-'.2.'> 
 
 ]3a.ai7.3'J 
 
 r. C. [niiHovcniont Tnnd 
 
 ConiiH-n.-^alion lo Seif.'iH'Urs, (ani'ws) 
 
 Townslii]) Inili'ninity, 'Id (Interest) 
 
 UaUilhiei in wliieli Ontario and tjnel)..;' are iulero.ste(l_, jiayalil.Mn Casli 404,2.14.124 
 
 ('(imiiinn Srlioiil Kund ^^i i3J,224.47 
 
 Le.ss inve.<tnient.s ; 
 
 •• Oiie'i.'oTiniil.ikeTrn,st uS.OOO.O;) 
 
 Arrears ol' interest 2',I,.WJ.OO S7,:k<?0.00 ],G4.),044.4. 
 
 U. C. (iramni u' School I'und. 
 Less investments 
 
 30J,7i')'.l o4 
 .)0,liO0.(KJ :j12,70'J.(J4 
 
 U. C. BniMiiif.' Fnnd l,57S,SOS.yO 
 
 Less lielientiu'e acocount 30. SOU. 00 
 
 •' Investments 30,(H)U.OO 
 
 '• Citv ol Hamilton, (part) , . , „. 
 
 ' impaid interest lo.soo.oo 77,000. (H) l,.)01,•-'(•^.'.1l> 
 
 I,. ('. Superior Edneation Tnnd 
 
 Su|iei'anmii\tiMl 'r<>acl.e]s Fnnd. 
 Normal Scliool building Knnil. . 
 
 377,2.')l..03 
 
 i700..s8 
 
 0I,70I..S4 
 
 441,714.2.") 
 
 Less Siii>erii)rKdncation Income Knnd.. . . 23O0SL40 
 
 Investment.- 2',t,400.(H) 
 
 City of Hamilton, (pin't) 
 
 arrears of inti'rest. 3 O;)0.00 
 
 Educatioi!, Legislative (irant 2S.4<.i4 7.; ,in.>i-or 
 
 Do Advance Acconnt 2'.M 10 2'.L'.4(,0,2'.I 1 4'.t,24, .'.M, 
 
 Liiliiliti.'s in wliieh ( ). k Q. are interestd, on which .') per cent, interest will l.e paid, . .3,OLI.H,.^70.43 
 
 Comp- Ms.Kion to ."sei^ncnrs, (capital) "^•i''.''l','!I"!,o 
 
 Township hidenmily do .. ..lO.O.OU o o,.,. uk, ,,■> 
 
 l.i.d'iliiies in which O. .t Q. are interest.Ml, on which b p<'r cent, nderest will he paid. . o,SUJ,ftIU.u- 
 I.,, 1- J" 5iKl43..*^4 
 
 Widows pensic 
 
 j^, (.;;; 4,120.31 
 
 Liil.ilities which will hi^ retained at present, und afterwards i.aid in Cash . . . . . 
 
 ]lniUhi.s: .\ccoiinis ''r?.''.''-iv ,-•' 
 
 Less Crown Lands .Suspense Account ii., . i.v^ 
 
 Consolidated I'nnd '"n^'-jll I- 
 
 Add I'rown Lands Snspen.s,. Account J 1_, .-l.^.u.. 
 
 Dillereiice on par value of (.'an idian lioiids t iLcu Imm 
 
 Bank of L. C '' ''■'•'■ •'•• 
 
 . . u4,-"')- IJ 
 3,0%,415.22 
 
 Less .s,.i-ui.ii'i:il Act of IS.V.t 5,l'.»3,S20. ,S 
 
 Co!i~ol. Kund Suspense Account.. . 24,f<i.!.0'J 
 
 Crown hands li,.parlnient 2.j;t,O.><".l.70 
 
 'I'rusi Fnu'l Advance Account. 
 
 1,40S.0'.» 
 
 7,3aO,.'^32. jO 
 
 .■|,473.2."i2,.'^3 
 
 Total I 
 
 1,S77,.".7'.).7;! 
 
 $77.07'.i.43.'>.04 
 '''''lJ.sri''onsoiidat'.MlVimd''.^^^"''.''^;''.'''"' l,.S77,.M'.t.73 
 
 (iross Peht $7o,SOl,Sj5.31 
 
 l,^-*^"'."''''> •''"' 
 
 ;i'.i."i,osi.2.") 
 I,101.2.-)l.',i0 3,74.-),4,S,S.79 
 
 SinUin,!.' I''uuds 
 
 C.aisoli.latcd Fund investment: 
 Jianking Accounts 
 
 V,.. -n..!,* 72.o.")0,300 :>-2 
 
 Allow:.! 1; I nionAct::;:. :::;:..:;:: o^.^'"M:m.oo 
 
 Exces;! of ,1,0, t as on .luue .30. I,s07, irrespective of arrears suioe that date an,l tho 
 
 capitalisation of i'ensiuns ami Indian Annuities. 
 
 0,.7.-)0,360 52 
 
ASSETS, 
 
 Siiikliif.' Kiimls 
 
 I'ul.lir WnlUs 
 
 I'lUt-llUSC (»t TH- SllNlllllTX. 
 
 , . . #2".l>ll.V.W.t ■'>.'! 
 ll.").Slll (Wt 
 
 $i,sss,r):)5.r>s 
 :;7,7iii,7'.i'J..Vi 
 
 (iiiiiid Trunk liiil Ifoiid ]..,14J,I).;.j.,.4 
 
 (iiv.it W-.-lrm Uiillfna.l S^.XK-.r.lMj.lK) 
 
 J...-S SinUiii;; iMiii.l (IT.K-'.S.df. li.742.«7l ^4 
 
 N.Mihcin Kiil li'ud U'..!l I.CitW, 07 
 
 Kiilw.iv-' Cripinil ,■.•,■.■■■■,• 
 
 (iiMiiaTiMi'ik li.ul l!o;i<l 1(1,4.)., 4.(S. (11 
 
 (iic.it Wi'slriii Hail Ifoad l.i;J'.».747..'iU 
 
 I,csrf Ai'.oimt CiiiTcnl ss('..47 ],l:ili,SGl,03 
 
 Nc.ill.,-m MM l!na,l 1.4;i.'i.7f.'i -•.■! 
 
 U:uliv,ivs, iiri<Mis of intiMot ,■■■.■.' :,'.,' 
 
 ( iniiid 'I'lUiik lii.iids ill ( •niisnlidatcd Fund iuvfuliui'iit accouiil i;4.i,4lll> .i.] 
 
 .Noiiii.iii •• •• " -■'•}:i''"V','i| 
 
 (liiiiid I'lUiik SiMH'iid iiicount. i.-il;.. I.S 
 
 Miirtlic'in " 
 
 l.'U,l%,U71..i.J 
 
 l,'{,Ol'l,07'.».L'7 
 
 .';ii.'.t7''>.7(i 
 
 MisccUini'ous Itiilway J'.'l.ts • •■ 
 
 Moiuicid lliirl">iO)mini»«iiiii Jl'.MMMH) 
 
 ]),, 7,(«K).(H) 
 
 Caliirn.iui \tvi<\'i 
 
 fi..j7'.l.i;(l 
 
 ilisrcllancolH Assets ■• 
 
 Law SK-iclv, r. »'., Ki'lifiitiuv aicmiiit l(),(ll"MII) 
 
 •■ Ai-coiiiit ciiiivlit llll.Oli.Cil 
 
 MoiUrral Cuuit Ilou^-c l)i'liciitiin' account '.i.i.tJDlt.dl) 
 
 A.'c.aiiit current iN.'.i'.Ml.'JI 
 
 M"<,01S..'i4 
 
 •S)J)-2'J.-2(> 
 
 (II » I . ( II ) 
 
 ],l:.)'.i.7(> 
 j(il.'J7 
 
 4,11(111 (MJ 
 
 i;(ii,-j.")4 Oj 
 
 ,iiiildinir"a'nd .Viii v Fund, ]..'(' I"','"* V! ''" 
 
 Mnniiipalitii's Fund. L. (' 4.S4,L'44 .>.i 
 
 MiuiiciiK.l !.n.m Fund, r.C 7.; .(Hid. (10 _ 
 
 hcss Sinking Fund 4J'.i..")4S tl:i 0,,S,0,4.jl..'i, 
 
 Avlnu-r Court lloiwc |i,.|.i.|ituic. account.. .. 
 
 Account curicnt 
 
 Kainouniska Court Ili>usc. Account ciirrunt 
 
 .\^'ricultural .'^ocii'tics. l'. C 
 
 (.Jiiclicc Fill' l.oin (arii'ars) 
 
 Municipal Loan Fund, L. <.'. . . 
 Less .■^inking Fund 
 
 L',4is.l4lt.(M) 
 
 ii7l.o;i',(.:;;j 
 
 Municipal Loan Fund, F. C.. iulcrcst . . ;;..^17.(dS.^!|! 
 J,cs,s Seigniorial Indeinuily ;i.,'lil4,l!4'.i.,").) 
 
 ^[uuicipal Loan Fund. L. C. iiueivst 
 
 Assets, till' I'rop.'riy ol't.lntaiio and (Jucl>i 
 
 Ind.'iuuity lo l!ev<'uue ln,s)]ectors. F. C 
 
 licilist ration .Service. L. C 
 
 I.',]5(;,.'^()0.(i7 
 
 l'Ili,7tlf<.77 
 . 7.^L',7.'i-').;!4 
 
 l!,4i:C).41 
 
 i;.,')Li4.;{,s 
 
 Assets not in .S'hediilc. lait ol' the same character as tlio.se transferred to (I. A t^. 
 
 Ontario and (Jueliec Suspense account 
 
 I'.auk of r]ip<.r(;anada ■■■ ^ 
 
 Jnvcstmeir.s o|( •oiis,,|idated Fund to lie treated like B. I . < 
 
 to lie deducted Irom debt 
 
 Banking .accounts ],714..141 .7:J 
 
 Less Crown Lands Department L.).),( ).><'.). ib 
 
 ll,l(i."),7?;.'J.4;j 
 
 4,n,')l).7".> 
 I, -J 14 ',!'.) 
 
 l,l.')ll.(IINI.(ll 
 
 li.'((,.V.i',l. 14 
 
 o',t:),(nSJ.o,-) 
 
 i,4ui,i.'r,i.<io 
 
 ii77,07',t,4a,j.O4 
 

 6 
 
 Principles upon winch nil Trnnnnctions since June 30, 18G7, will be introduced 
 into the Statement of Affuirs of the late Province : 
 
 (I.) Wlujni'vcr a servicL- lias brcn iiciforincd or a dihl incurred before June 30lli 
 1807, wliidi wlicn |)aid would l)n cliarj,'i'd aijainst CU)ns<)liilatc(l Fund, or juiy open 
 u(u-()Mnl ill till' Ifdf^i'r iu wliic-ii Ontario and (iufhet- are not s|)ecially inlcrc^ttd, il the 
 payuienl was made alter tlnit dale, it is to lje ciiargejIayainM the lute Provinee, whether 
 il is mere current expenditure, or whether it leaves a vidnalile a?*sct hehinci, iit* stores or 
 publit; works. And reecipis ilue Lefoie June JUlli, luid.'r similar eiicumstuncci», are to 
 be crediU'<l to the hitu Province. 
 
 (2.) Balances of appropriations eharp;eai)le against Consolidated Fund, which 
 remained uaexp;nd:;d Jiuiu 3lJlh, an; t » b^' treated as lial)ilities of tla; late Province 
 only in those eases, where there was a liclinile f<raiit, a balance of which was left in the 
 hands of the Province!, and not when they were only meant to cover current expenditure, 
 which might or might not be recjuired The balances of appropriations, June SOlli, 
 which come under this ileliniiion, are the following, and aie payable in t-ash, viz : 
 
 Common School Grant, U. C $ I JO. 999. 87 
 
 Do. L. C 58,()()().0() 
 
 Colonization Koads, U. C G5,9;)!t.(J0 
 
 Do. L. C o,G9,>.ll 
 
 Agricidtnrid Asi^ociatiou, L. C 4,000.00 
 
 Agricultural Insluiction, U. C 100.00 
 
 Do. L. C 27.00 
 
 University Lying-in Hospital, .Montreal 480 00 
 
 St. Hyacinth Hospital 3J0,0(» 
 
 Indigent sick, Quebec 8.15 
 
 Pensions 280.00 
 
 $261,846.13 
 
 (3.) Interest on Piiblie Debt, and Commission and Chnrgcs thereon, due July 1st, 
 are to be (^luirged against the late I'rovince, and interest and charges thereon falling due 
 after July 1st, are to be charged agai'ist the Province and the Dominion, in jnoportion 
 as the period ia respect of which they accrued was before (U- after July 1st. 
 
 (I.) The late Province is to be credited with the discount, iU which investments 
 were purchased for the Sinking Fund afier June 30:h, to tlu; extent to which those in 
 vestments were reipdred to be made up to that date ; and the Province is to be charged 
 with the discount at v. hich investments might have been ptirchased, if ihe £50,000 
 Sterling remitted afli;r June 30ih had been remitted in cash insl<'ad ' ! bonds. 
 
 (5.) The Province is to be credited with the premium at \\!,!': the balance of 
 the investments of the Imperial (Juaranteed Loan Sinking Fund wi i be disposed of 
 iu Decembcj^exi. 
 
 (6.) Tht^'rovinct! is to be charged wi'.h one lialf of the salaries of the Prison In- 
 spectors ia 18(!7-iS, and with such a jaoportion o( their expenses as ihcy may certify 
 wen; incurred in inspecting instilulioiis under the control of Ontario and Quebec. 
 
 (7.) All arrears still due by collectors and public accountants, or by any other 
 persons, in respect of services which are now under the control of the Local (iovernments, 
 iiihall be handed over to Ontario and Quel;(;c, conjointly to \a\ dealt with by the arbitra- 
 tors, and shall not be laki'ii into aei'ount in the settlement l:etween thiv Dominion and 
 the late Provin<'e. All arrears due Ly eolleetois and other aceounlanis, in respect of 
 services under the control of the Dominion, shall be assumed by the Dominion and 
 credited to the late Province at tlieiv full value, if the aecoimtants were still in the 
 service of the Dominion .luly Isl, l>S(i7 ; but if they ha<l ceased to be in the service at 
 that date, suih arrears shall he valued by the Treasury Hoard, and shall be credited to 
 tlu! late Province at such valuation. 
 
 (8.) All pensions, which on July |si, l,Slj7, wer,'4)ayable to any person under laws of 
 the late I'rovince, and all pensions not guaranteed by law, I ul which liiid continued to 
 be |)aid annually by votes in the Fstimates, aie to be valued by capitalizing them 
 according to the age of the pensioners, by the Knglish (Jovemment Aumiity Tables 
 at 5 per cent., and siu-li capital is Xo be added to the liabilities of the late Province. 
 
(9.) Additonnl pflisions voted dnrinp; the Inle ScPKion in cunsoqurncc nfcnsualliPH 
 ari!<ini,'fr()iii ilx- Ftniiin inroads, having' bet'ii granted in order to cany out an address of ilie 
 l.e^^islative Ar'f<<Miibly of lliu late I'rovince, are to Ije similarly cajiilalized and added to 
 the liabilities. 
 
 (10.) Gralinties and eompensntion vote<l dnrini» the late Session in ronspqnenee of 
 the Fenian raitis shall he charm'd iiijainsl the I'rovinee, and a slatt uient will Le tnrnishi d 
 to the Arbitrators of temporary allowances voted for the same cause, and they aie to 
 award a defmile sum to be added to the liabilities to cover any probable continuation 
 of such temporary allov inces in future years. 
 
 (II. The Kratuities to old servants paid by the Senate l)y resolution last Session are 
 to be charged to the late Province. 
 
 (12.) The Indian aimuities |)aynble by the laws of the late I'rovince, and the new 
 Indian annuities IJ. ('., which have heretofore been voted annually, are to be capitalized 
 at 5 per cent, and added to the liabilities. 
 
 (13.) If a contract has been jjuU-red intt) bef*)re July 1st, all work or other service 
 performed under such contract is t(') be considered a liability of the late I'rovince ; biM if 
 there has been no contract, but only such instructions as, without prejudice to any indi- 
 vidual, mii;hl have been counlcrmanded, whether the servi< e be since .July 1st under the 
 control of lilt! ijeneral or the local govi-inment, the work performed or service rciideicd 
 under such instructions since June 30th is not to be considered as chargeable against 
 the late I'rovince. 
 
 (11.) When a receipt or payment, after SOth June, would be credited or eharged to 
 an open accoimt in the Ledger, in which Ontario or Quehec is specially interested, it is 
 t'lcar that the same rule must apply whether tlu^ account lie on the liability side or tie 
 asset side of the statement of iill'airs, or whether it l;e a ) ayment or a receipt which has 
 to be dealt with. All such accoiuits amongst the assets consist mainly of monies pay- 
 able before 3UtlhIune, and if any sum were re<'eived by the Dominion after .'5()lh June, mid 
 accounted Ktr as*i^ioditying the amoimt of the <lei)l, there does i:ol ajipear to be .■uiv 
 limit to tlu! time when such a tieatmenl of them would cease. Hut all tlic^e aeeounls 
 are dfvlared to he the property of Ontario and Quebci-, and from 3()th June, .all cash is 
 payable to them. For these reasons a separate account will be o|)ened for all such 
 funds, embracing the transactions which have come into the Dominion books since 3()lh 
 June, and the amount of the joint debt will be ascertained from the accounts as they 
 stood .'JOtli June, and all suljse(pient payments or receipts will be chargcil or credited 
 to the -frovince inleresled, alter the Arbitrators have made their award ; excepting only 
 in the ease of those aceoiuils which by section ((!) of the Principles in which the State- 
 ment of Atl'airs is to he revised are declared to be payable in Casii, and if those enuiia-- 
 rated in section (!>) which are to be retained for the present by the Donnnion. It follows 
 irom this rule, that ail appropriations of the late Pioviiiee made chargeable against 
 such accounts, nnist be paid by the Province interested, or if they have b(,'i'n paid by 
 the Dominion, they will be cliarged as a cash transaction. ^ 
 
 (15.) Tlie account in the statement of all'airs " Kegistraliou Fimd L. f.'.," is strictly 
 analoirous in its character to other assets tiansferred to Ontario and Qut-liec, being the 
 debt incurred by a Fund sui)i)orted i)y a local tax. It did not cNist in IHliti, Irom llu; 
 accounts of which the Seliedule of Assets transferred was ecimpilcd, or it would have 
 doubtless been included. It may now be transferred with them. 
 
 (10.) The item " compensation to Revenue Inspectors," is a very old account upon 
 which only 'iil.lJO has been collected during the hist five years; it is very much analogous 
 to other accounts transferred, and it may be transferred now, though not included in the 
 Schedule. 
 
 (17.) The lands in each Province were surrendered to them subject to existing 
 Trusts, and the Dominion is bound to sec that the Trusts arc cxeeuti'd.- — -A very largi; 
 sum, upwards of 'g|1,7()l),0)(), remains outstanding on sales of Coiimiou School Lands, 
 situati'd in Ontario, but in w hich Quebec has a joint interest, and the aj)portionmcnl of this 
 asset must be left to the Arbitrators.