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GAZETTE. 1881. :\ ■•• -.iSw****-: •*'■*' . ; \ xf trust tl)e for the e nitoba, « principh North we '■ position constitul ■ ^''*- Y "'V- joyed by Takin :, . .,''. ::\ ■'/,_,-: ^:.;;^-;' : _ circumst •; , :,■},■'.-'■ : -L.4V2fe/\._ viding I Northwe care and -« • men. The Cj for years difficulti( 8o comp] that Can I A Barrisler, MkniBy, Solicitor & Notary Public: LETTE RS*'^'^*'*^^*'^^'**^^^'^ lii \ Hi ON THE SITUATION IN THE NORTH WEST. LETTER I. When the business connected with the Canada Pacific Railway contract shall have been completed the next question that will probably occupy the attention of Parliament will be the extension of the boundaries of Manitoba. In the speech from the Throne we are told a measure to that eflfect is to be brought down by the Governmentj and it is therefore reasonable to expect that this will be one of the first measures immediately fol- lowing that ol the Canadian Pacific contract. In dealing with this matter, however, I trust the Government will not only provide for the enlargement of the boundaries of Ma- nitoba, but will also consider some broad principle for extending to the people of the Northwest Teiritory as soon as they are in a position to receive the same those rights of constitutional Government which are en- joyed by the rest of the people of Canada. Taking into consideration the peculiar circumstances of the case the problem of pro- viding properly for the Government of the Northwest is one that will require the utmost care and judgment on the part of our states- men. The Canadian Pacific Railway question has for years exercised the public mind, and the difficulties surrounding it became at one time so complicated that it was believed by many that Canada had undertaken a work beyond I A her ability to accomplish. The complication of difficulties, however, attending the pro- gress of the Canadian Pacific scheme arose moie from errors of judgment on the part of some of our public men, as well as an un- patriotic attempt to convert the question into a party struggle for power, than any real elements of weakness in the scheme it- self. The result, however, was a loss of con- fidence in the project, a serious injury to the character and progress of the Northwest, and a back-handed blow at the very credit < " Canada itself. By a decisive policy of action the Government, notwitnstamling the oppo- sition they have had to contend against, are now in a fair way to settle, once for all, the the great question which has been for years vexata qumstio with the great political parties of the Dominion, But at this juncture there looms up, it ap- pears to me, a subject of almost equal im- portance to that of the Canadian Pacific Railway, namely — provision for^the extension of constitutional Government to the North- west. The rapid construction of the railway through the prairie section will assmedly bo the means of attracting a very large number of settlers to the country within the next five or ten years, and the population of the Northwest, it is reasonable to suppose, will increase to such an extent that provision will have to be made with but little delay for granting them the same rights and privileges which the rest of the Dominion at ! present enjoy. ' ' With the proposed enlargement of the boimdarieB of Manitoba, I think the time has come for the Government to adopt some line of policy by which the North-western terri- ^ tory, when the proper time comes, can be divided into provinces of the Dominioij. i Some line of policy which, though of necf s- j sity, special in its character, owing to die peculiar circumstances that exist in the re- lations between the Dominion and the North- west, will govern alike all the provinces to be created in that portion of Canada. It has been customary for delegations from British Columbia, Manitoba and other pro- vinces to visit Ottawa at almost stated periods to ask for better terms. It is desirable I think to put an end to all such delegations in the future. I would like to see our great statesmen grasp the situation now, and by some broad, well-defined policy forecast and provide some mode of dealing with the future necessities of the Provinces in the North- west, so as to prevent any further demands on their part for additional aid. In defining such a policy, however, it must be remembered that the lands of the Northwest became the property of the Do- minion by purchase on the transfer of the country to Canada ; that local taxation for purposes of government is next thing to im- possible in that new country tor many years to come ; that while the construction of the Canadian Pacific will serve to develope and people the Northwest, it will at the same time be instrumental in adding very consi- derably to the revenue, trade and wealth of the whole Dominion, without contributing anything to the income of the new Provinces through which it will pass to enable them to defray the expense of local government, increased, as it will be year by year, by addi- tional population brought in by the railroad. EJre many years there will be at least four large provinces created in the Northwest, every one ot which will be without the neces- sary means to carry on the machinery of gov- ernment unless some provision ic made for them beforehand. As matters are to-day in the Northwest they would be without an acre of land on which to borrow or raise a re- venue ; tWey could not raise one dollar through local taxation ; they would not have tlie slightest security on whlcli to establish a credit ; they would have nothing but what the Dominion chose to give them in the way of subsidy. The province of Manitoba now owns just twenty-five acres of land within Its limits, and that is every foot it can boast of having under its control, unless it is a few lots in tlie city of Winnipeg, for which it had to pay city prices. The visits of Piovliiclal delegations to Ottawa on better terms are humiliating not only to the provinces themselves but also to the whole Dominion ; but how can they be avoided when there is an ever increasing necessity for expenditure without any means of supply except irom the Federal treasury ? Yet the sooner the necessity for such visits be done away with the better it will be for the welfare of Confederation. Our statesmen need no longer shut their eyes to the fact that some immediate step^ must be taken to place the people of the Northwest on a more independent footing ere it becomes too late, ere the means to grant them this independence are consumed, and the Dominion left for aV time to come with the ever increasing burden of having to provide the whole means for governing four provinces, each one as large if not larger than Ontario. Up to the present time the Government of Canada have not been in a position to deal with this question because no definite policy had been adopted in regard to the construc- tion of the Canadian Pacific. It has always been contended that the lands of the North- west were to pay for the cost of the railway, and therefore nothing could be done con- cerning their disposal until such time as it became known how much and in which localities the lands would be required tor railway purposes. The decided action taken by the Govern- ment on the Canadian Pacific question has not only brought that important matter to a favorable issue, but it has also secured a solution of the difficulty attending the/iisposal of the Northwest lands. The Piuific Kail way contiact has loft the way clear now for tlio (lovernment to be able to apportion the lands that may be necessary to pay for the whole constrnction ot the road after whi(4h a certain quantity can be applied to the maintenance of the provinces to be created. It must be understood, however, that the policy of making the lands of the Northwest pay the whole cost of the construction of the Canadian Pacific is not fair by any means. The road is as much a national undertaking as was the Intercolonial or any of the expen- sive canals in Ontario and Quebec the cost of which was borne by the General Govern- ment. Inasmuch, however, as the Canadian Pacific will be the means of opening up the country and increasing the value of the lands, I think it but proper that the North- west should bear a large if not the largest proportion of the cost of construction, but it cannot be denied by any intelligent man that the older Provinces of Ontario, Quebec and those on the Atlantic coast will benefit to a very large degree by the immense trade which the railway when completed will bring to them. Moreover, the revenue ot the Dominion will be largely increased, so that when the Northwest will have borne the whole cost of constructing the road it will have done actually more than its share towards the common welfare of the whole of Canada. Yours, JULIUS. i \W' LETTER 11. It liaB been used as an aixnment against the Northwest tliat the country cost the Dominion one million Hvchunthed tijotisand dollars as purchase money. Well, adraittiuK this to be the case, let us see how the Trea- sury is to be recouped this amount. Allow- ing that there are 250 million acres of good land in the Northwest, it would make the cost to the Dominion Jibont 6 mills per acre, at which rate, with its present boundaries, Manitoba would have to repay about $48,000 to the General (Jovcrnment as the first cost on its lands. If enlarged to contain say 75 million acres, it would liave to pay back on a proportion of 00 million acres of good land within its extended boundaries $300,000. The three other provinces to be created would, in like manner, have to recoup the Treasury their proportion. But to return to Manitoba, as it is at present, how does it stand in relation to its lands ? The total cost of surveys of Dominion lands in the North- west was $1,318,485.05 up to the close of the year 1879, and for the same period the fol- lowing was realized by the Government of Canada : — 9,844 Homestead entries at $10. . . .$ 98,440.00 820,579 Acres preemption at $1 820,579.00 243 Entries free culture at $10. . . 2,430.00 610,0«7 Acres sold at $1 010,067.00 $i,5;n,5i6.oo Less cost of survey, Ac 1,318,485.05 Balance in favor of Manitoba.. $ 213,030.95 So that Manitoba had paid in up to the close ot 1879, after paying all expenses of survey, the sum of $213,030.95 towards liquidating the first cost of the lands. By the close of 1881 it will have more than re- paid the Dominion its share of the purchase money to the Hudson Bay Company, even including the area that will be contained within its enlarged boundaries. Now these figures, taken from official sources, com- pletely do away with the argument that the Dominion has to bear the burden of paying for the lands in Manitoba. The lands in Manitoba, therefore, so far as actual outlay is concerned, really belong to the Province. Manitoba has also been represented as a burden on the Dominion. Now let us Bee how this turns out when figures are consult- ed. From the formation of the province till the close of 1880, the amount received by the Dominion from Manitoba was as fol- lows : Customs duties $ 1,576,899 98 Excise 2I6,7:K) 75 Timber dues 28,863 57 $ 1,820,494 30 Less subsidy for same |)eriol»,067 70 RoadH and bridges Uppor and Lower Canada 1 ,6I6,S30 5 1 Oovernrnent buildings, (Ottawa. . . 4,0.')(),611 K7 Miscellaneous works 2,39 1, 191 SO Improvement of St. Lawrence. . G raving dock, Quebec .$ 1,306,000 00 125,000 00 These two are in the shape of in- vestments bearing interest. $14,788,128 l:{ So that over 90 millions have been expondcil on public works in the older Provinces for which the Dominion is liable. Not one cent of this expenditure has been paid, the money having been borrowed is still due, and in the liquidation of the debt the Northwest will be called upon in th«! future to play a very important part. Yet, the Dominion is grumb- ling lest they may have to pay any portion of a work (the Canadian Pacific Ball way) which when completed will open up a great country whose treasures are destined to assist very materially in paying ofl the present public debt of Canada. It Is true the public works which 1 have enumerated are considered as assets of the Dominion, and that the Canadian Pacific when completed will not be so considered as It will be handed over to a Syndicate of ca- pitalists. This may be an argument used in favor of allowing the whole cost of construc- tion to rest upon the Northwest, but it does not change the fact that the benefits derived from the running of the road will be almost equally distributed over all the Provinces of the Dominion, and that therefore the under, taking Is of a national character. It is useless, however, to enter into an ar- gument as to whether the Northwest ought or ought not to bear the whole cost of con-- struction. It has been decided that it shall pay for the road, and therefore we will now see how it is to be done. I do not think it is over-estimating the amount of good land In the Northwest when I place it at 250,000,000 acres. My own opinion is that it will be found to exceed that amount. However, we will take 250,000,000 as our ground work. Of this there are 25,000,000 given out and out to the Syndicate, who will construct the road. There will be 12,500,000 to go to the Hudson's Bay Company under their bargain with the Dominion, and for school purposes there will have to be laid t1 'i\;M 41 )!»,<)(t7 70 j(i,H;ii» 51 ■»(),rtl» H7 l»i,ll»l SO S8,12H l:{ ;pi.'li(lc(l ices foi )ne cent i luotiey d ill the rest will y a very i giumb- poitioii lailway) > a great to assist present aside in the neigliborlinod of 14,000,000 inure, leaving still in the luuids of the Uov- ernmeiit of Canada 19R,r)00,(»0(). l)f this there has been disposed already — HomusteadH, pre*emptionH and sales.. .',i,'2U ,^AYJ llalf-broed grant 1,400,009 Hettlomont Dolt and other Nottleinents not included boforo, say ; l,(MiO,000 5,631,507 Or in rough figures 5^ millions, thus leaving a net balance in the hands of the Dominion of \[)',\ million acres for the p\irpose of re- couping the money already expended on the Pacific Railway and of raising the necessary $25,000,000 to pay over to the Syndicat**. The estimated cost of the work to be completed by the Government on the railway is $30,000,000, which, with the sum to bo pahl to the Syndicate, will make $r,5,000,000. I think $1.00 per acre is the proper net value to place on the lands, notwithstanding what has been said to the contrary, because any sum realized over and above that nite will be required to pay commission and chaigow of management in disposing of them. It will require, therefore, 55 million acres to l)ay off the coat of the railway, which, when deducted from 103, leaves still 138 millions for the maintenance of the provinces to be created in the Northwest. Yours truly, JULIUS. li 1 have its of the 1 Tacific ddered as ate of ca- it used in construe - ut it does 8 derived le almost jvinceB of [he under- K'ii r-n LETTER III. I I can understand the difficulty of handing over the balance of the land to the North- west provinces until such time as the coun- try has been surveyed and the proportion for the construction of the railway actually located. But we will see if some plan can- not be devised by which this obstacle can be overcome. Before doing so, however, let us look into some other matters. A rearrangement of the specific grants to the several provinces for legislation and civil government will have to be made, in order to make them more uni- form, especially in the case of the Northwest. The specific grants at present are as fol- lows : — Ontario 80,000.00 Ciuebec 70,000.00 Nova Scotia 60,000.00 New Brunswick 50,1)00.00 Prince Edward Island 50,000.00 British Columbia 35,000.00 Manitoba 30,000.00 In re-arranging these specific grants to the provinces the question of territory and local revenue ought to be considered, as well as population, because it is very clear the two former have a very great in- fluence on such expenditure. Thus, lor in- stance, Manitoba, which at present has a very limited area, when increased to prob- ably ten times its size will require to ex- pend more than double the amount for leg- islation and civil government, owing to the necessity for increased representation and in- creased duties thrown upon the local gov- ernment without, however, gaining any ad- ditional income from local sources by the enlargement of its boundaries. While the older provinces of the Domin- ion accepted the specific grants allowed them on entering confederation with a full knowledge of their wants in that respect, and while their circumstances are not apt to undergo any rapid or very important changes, those of the Northwest Provinces are subject to alterations year by year from a continual increase in population and de- velopment. Taking into consideration these features of the case, I think it would be but fair to place the Northwest Provinces on the same footing as Nova Scotia, because Manitoba, for instance, with its enlarged bound- aries will have a territory nearly as large as Ontario, and its popula- tion in a year or two will likely exceed that of Nova Scotia. The three pro- vinces to be created in the Northwest will possess almost the same characteristics as Manitoba in its enlarged form, and therefore a uniform sum of $60,000 annually in aid of legislation and civil government might be very properly given to these new provinces. Any alteration in the specific grants to the other provinces will no doubt be adjusted as circumstances may warrant. The next questic. to which I would call attention is the second grant made by the Dominion to the provinces, namely, 80c. per head on the population, as shown by each decennial census. When Manitoba was taken into confederation the population was as- sumed to be 17,000 souls, and on that number the grant has been regularly calculated, although the actual population has yearly increased, until now it will num- ber some 60,000 or 70,000. A decennial census is all well enough for the older pro- vinces, where the population is not liable to increase very rapidly, but in the case of the Northwest, where each year adds thousands (in future it will probably be tens of thou- sands) to the population a census taken only every ten years cannot answer the require- ments of a new and rising country the same as it would an old and settled province, nor can it, therefore, do justice in the premises. As an example of this, look at the case ot Manitoba, which, within the last ten years, even without the aid of railways, has more than quintupled its actual population. Be- sides this, it is a well-known fact that a very large number of people left Ontario and iff •1 > 4 i 12 the other provinces to settle in Manitoba during the last ten years. Yet Manitoba received no benefit from that increase to her population, while Ontario and the other provinces were paid annually 80 cents per head for each person who had thus gone to reside in the prairie province. Was this fair ? Ontario, for instance, was relieved of any further charge of these people, while Manitoba had to assume the responsibility without receiving any corresponding benefit. The result was that Manitoba being un- able to meet the increasing requirements of the country had recourse to the Dominion for assistance, and the Federal authorities so far recognized the justice of the claims of that province, that they on two occasions, granted additional aid by an increase to the annual subsidy. To show the total inadequacy of the sub- sidy allowed Manitoba it is only necessary to compare it with the actual expenditure of the Province for purposes of local govern- ment. By reference to the public accounts of Manitoba, I find that the expenditure up to 31st December, 1879, amounted to $1,016,- 840.39, and the subsidy on the original terms for the same period would have been $604,- 830. The balance $41 2,003.8V was made up in the following manner: — J lu'rejuseor subsidy by Dominion $101,356 U> Advance on Scliool Lands 20,000 00 Amount taken from capital debt al- lowed by Dominion 158,386 11 Local sources of revenue for nine years 132,261 59 I understand, will take place in a few months ? What has taken place in the past is likely to occur again in the future in regard to the subsidy allowed Manitoba, unless some pro- vision is made for guarding against the same,. With the rapid construction of the Ca- nadian Pacific Railway, popultion is certain to increase to a great extent. If the census taken in Manitoba this year shows 60,000 inhabitants in less than three years, the num- ber will be more than doubled. It would not be fair then to strike a rate of 80 cents on 60,000 to last for ten years under these circumstances. It would be the old story over again ; the increasing demands of the Province would soon oblige the lociil Gov- ernment to renew their delegations for better terms, and the Federal authorities would have to increase the subsidy in order to do justice in the premises. But there is a course open to the Government of Canada to avoid the necessity for any such state of affairs, and that is, by granting to the provinces oi the Northwest a triennial census oii which the grant of 80 cents per head could be regu- lated every three years. This, as a special case under the circumstances, would be per- fectly justifiable, as it would prevent any future complications in the subsidies to the Northwestern portions of Canada, and would do away with any neccftsity for future dele- gations to Ottawa. As soon as the popula- tion of Manitoba should have reached 400,000, the grant of 80 cents shall stand at $412,003 89 I Manitoba during the past year has been obliged to withdraw another $100,000 from ! its capital debt for local improvements, and the subsidy, though increased, is still found insufficient for the current expenses of the Pioviuce. How will it be, then, when the boundaries of Manitoba are enlarged, which, that uumber, and no further increase in the inhabitants will aft'ect the subsidy, so far as this portion of it is concerned, so that the triennial census would only be of a tempo- rary character until the maximum ratio of population was reached. Youis, JULIUS. fl' 'It: a few i likely I to tho le pro- nst the the Ca- certain ! centjus , 60,000 lenutn- t would 80 cents lei- these Id story s of the jal Gov- 'or hettcr s would er to do 5 a course to avoid >f affairs, princes ol )ii which I be regu- special d be per- vent atiy ies to tho nd would ure dele- popula- reached stand at le in the so far as that the a tempo- ratio of fLIUS. LETTER IV. When the several provinces now com- prising the Dominion entered into Confedera- tion it was found necessary, in order to re- lieve Ontario and Quebec of their debt ol seventy-three million dollars, to grant to each ot the other provinces a credit on capi- tal account. The amounts ullowed were as follows : — Nova Scoita $10,531,536 New Brunswick 8,176,680 , Prince Edward Island . 4,701,050 I British Columbia 1,046,284 Manitoba 551,447 At the close of the fiscal year, 1879, these | sums placed to the credit of the provinces liad been reduced from one cause or another, so that they stood as follow : — Nova Scotia $54,800 87 New Brunswicli had not only used up all its capital but was in debt $17,214 44 I'ri nco lid ward Island 793,a"»6 12 British Columbia 501,871 24 Manitoba 293,060 89 From which it appears that the most of the capital debt allowed under the provisions of Confederation to the minor provinces has been made use of. I think the principle of keeping debt ac- counts with the provinces ought to be done away with as soon as possible. Unless the Dominion wishes to continue lending to the provinces, I cannot see any use for such ac- counts remaining open. Now, that the pro- vinces have used nearly all the capital they were allowed, it seems to me a good time to put an end to any renewal of credits. Let the subsidies be based on specific grants. If, for instance, British Columbia is entitled to $100,000 for the right of way of the Cana- dian Pacific, let her have it, and then it will be a regular annual specific grant, and as such will form part of her subsidy. With Ihese specific grants and the 80 cents per head on population, the obligations of the Dominion to the provinces ought to cease. In readjusting the financial basis on which the relations between the provinces and the Federal Government are to be carried on in future, care ought to be taken that the cir- cumstances of each portion of the Dominion is fully considered, so as to avoid future complications. To do this I think it would be advisable for the Government to lay down a law determining the na- ture of public works to be assumed by the Dominion, and at the same time making it perfectly understood that no Pro- vincial Government shall undertake works beyond their means to accomplish, in the hope that the General Government of Canada will relieve them of the responsibility. I also think that unless the Federal Gov- ernment can hold some proper security for loans to the Provinces, no such loans ought I to be made. What I desire to see is a more I independent attitude between the Provinces j and the Federal Government, and I would also like to see the Provincial Governments j prevented from adding to the general burden ' of the country by throwing their public works j half completed, on the shoulders of Canada I whenever it is discovered that the Province I is unable to carry on what it commenced, on I its own responsibility. I Each Province should be perfectly inde- : pendent of any help from the Dominion ' more than the receipt of a regidar subsidy , from the General Treasury. Of course, if ; the Provincial Goverments can raise the i means to carry on any public works without asking aid from the Dominion, it is their ', rright to do so so long as they do not en- i croach on the privileges of the Federal au- j thority. ! It seems to me an element of weakness in confederation that the Dominion Govern- ment should be expected to patch up every attempt on the part of provinces to do more than they are capable of completing in the way of public works. It is like allowing too many fingers in the pot which holds the general welfare and financial standing of the I country. j Vo resume, however, the question of Northwest lands and the difficulty of dealing ' with them until they are surveyed and fully % I : ^ .r 14 ;j explored. 1 think some plan might be ar- ranged by which the province^ of the Norihwc'st could derive some immediate benefit from them. It is quite certain that Manitoba, for instance, must have some other menns of revenue than merely the specific grant of $60,000 and 80 cents per head on actual population. The sum derived from these two sources would not suiiice to pay one-half the whole cost of local Government. As already stated I am averse to renewing the system of a credit capital debt, because I tliink the principle a wrong one and liable to lead to confu.sion in the future. The only thing left them from which to derive a revenue is the land, as no other source for raising money is within the reach of the new nrovinces. Manitoba, however, cannot wait until all the lands of the Northwest are surveyed and ap- portioned for railway, school and Hudson's Bay Co. purposes, and so some temporary plan must be adopted in the meantime to get over tiie difficulty. I stated in my last letter that 138 million acres would be left for the maintenance of the provinces after paying the whole cost of the Pacific Railway, and laying aside the school and Hudson's Bay lands. We will suppose that four prov- inces will be created in the Northwest, each one about equal in size to the others. We will then throw oft' the 38 millions to pay for expenses of management and for worth- less lands. This will leave 100 millions, which, divided by tour will be 25 millions for each province. To make our calculations as nearly correct as possible we will, however, throw off an additional 10 millions from the share of each Province, leaving 15 millions, which, after having been sift d as thorough- ly as I have done, wil surely turn out to be good agricultural and valuable lands. We will, however, still continue to value these lands at $1 per acre nett, which will give to each of the Provinces $15,000,000 of a capi- tal in real estate. Now as the Pacific Rail- way is to be completed in ten years it will surely happen that by that time it will have been determined which lands are to be handed over to Manitoba as its share. In the mean- time, however, the Dominion will be in pos- session of the security. Now if an under- standing was arrived at that as soon as the Pacific Railway and other lands shall be de- termined upon and set aside the balance will be handed over to the Province, Mani- toba would have some security with which to visit the money market and efi'ect a loan fur the purpose of defraying current expendi- ture, pending her getting actual possession of her lands, or the Dominion would be justified in advancing a regular annual sum to be recouped from the first sales of Manitoba lands. This would be justifiable, inasmuch as the security lor repayment of the advance would remain in the hands of the Dominion, and a sufficient number of acres could be ^retained to cover the amount advanced ere the balance of lands was handed over to the province. I do not suppose that anyone will argue that after the cost of railway con'fetruction is liquidated, and the whole of the charges on the lands satisfied, the balance ought to re- main the general property of the Dominion. If this were to be the case, then the Domin- ion would have to provide a specific grant for each of the Northwest provinces to enable them to carry on local government and pro- secute local improvements. And as the country would become more and more de- veloped, the burden of providing for the re- quirements of the Northwest would increase in proportion until the. Dominion would find a millstone round its neck, very irksome in- deed to bear. Especially would this be the case when the provinces, having to rely on the Dominion altogether for support, would be likely to harrass the Federal Government by continual complaints and fresh demands, while if the more independent course was pursued by handing over the lands, a line would be drawn over which the provinces could not reasonably expect to step. Yours, J¥LIUS. i am like th( that wt salaries red tap( tures, Hf of the V be very of Cana am incl lines wl provinc( placed I municip after loc variety ( welfare ( cepted i which w the time wise to i ciples or minion \ to eifec doing a might er whole of duty of such cha endeavor stitutions fed e ratio] fact that and that i on the pa ings of j now and ; the peoj)l At one ti: forward w another t some of t is Ontario than her s and it kee Water all i the demai to see moi handed 3 mean- in po8- under- 1 as the 1 be de- halancc , Maui- a which j a loan jxpendi- Hseasion ould be annual sales of istifiable, foment of hands of imber of e amount mds was ill argue ruction is larges on ht to re- )ominion. e Domin- lific grant to enable and pro- as the move de- )r the re- d increase irould find some in- is be the |o rely on •rt, would vernment demands, •urse was a line Iprovinces LETTER V. 1 am one of those who think that Canada, like the United States, is too much governed ; that were the sums expended annually for salaries of Lieut.-Governors and for the petty red tape institutions of provincial legisla- tures, saved and applied to tlie general good of the whole country, the Dominion would be very much better off, and the public debt of Canada would not be so great as it is. 1 am inclined to think that, were the imaginary lines which constitute the boundaries of the province wiped out, and the whole country placed under one general government, with municipal or county organizations to look after local affairs, there would not be such a variety of interests to clash with the general welfare of the whole. But since wo have ac- cepted a constitution under Confederation which was made as just to all as could at the time be done, 1 do not think it would be wise to interfere with the fundamental prin- ciples on which the framework of our Do- minion was built. I fear that the attempt to effect such a radical change as the doing away with provincial Governments, might endanger the peace and welfare of the whole of Canada. Therefore, it would be the duty of every true Canadian to resist any suoh change in our constitution, and rather endeavor to perfect as near as possible the in- stitutions and rights granted us under con- federation. But I cannot shut my eyes to the fact that a danger of disunion really exists, and that it requires great skill and judgment on the part of public men to allay the feel- ings of jealousy and discontent which every now and again give signs of vitality amongst the people of one Province against the others. At one time it is British Columbia coming forward with some grievance, then Manitoba, another time it is Prince Edward Island, or some of the other Maritime Provinces, or it is Ontario asserting that she is paying more than her share to the common good, and so on, and it keeps our public men apparently in hot water all the time to know bow to satisfy all the demands made upon them. I would like to see more of a spirit of real union amongst the Provinces, more of a willingness to assist each other, and more of a spirit of amor patrise governing their actions. To bring this about it becomes the duty of the general Government to adopt one broad principle in their dealings with the pro- vinces which can be made applicable alike to all. To create new provinces in the North- west, and then tender them difterent privi- leges or terms from those enjoyed by the other portions of Canada, is only going to lead to confusion in the future. If British Colum- bia receives $100,000 for the right of way to the Canadian Pacific, why should not Manito- ba and the other provinces to be created in the Northwest receive the same treatment ? If it is because Canada paid a million and a half for the lands, then I have already shown that the Dominion Government will be more than recouped for the outlay. If Canada saw fit to pay $729,205 95 for the purpose of giv- ing to Prince Edward Island the control of her public lands, why should she not invest $1,500,000 to give the Northwest provinces their lands ? If Prince Edward Island is ex- pected to repay that money to the Dominion, why should net Manitoba and the other pro- vinces be allowed to do the same, and still be given control over their lands ? Every pro- vince in the Dominion, except the North- western portions of Canada, have control over their public lands, from which they realize a very considerable revenue annually. Now this is not a proper equalization of Pro- vincial rights. Although 1 have acceded to the idea that the Northwest lands ought to pay for the construction of the Canadian Pa- cific, I do not admit its fairness. If I did, then the same principle, in my opinion, ought to apply to the other public works of the Dominion, or, in other words, each Province ought to be expected to recoup the Federal Government for that {portion of expenditure on public works carried on within its limits. This, of course, would be absurd, but if ab- surd in the one case, why not in the other ? All lands in British North America were first vested in the Crown before they were I i 16 handed over to Canada. The proprietary rights of the Hudson's Bay Company to the lands in the Northwest had to be satisfied, it is true, ere Great Britain would hand them over to the Dominion. But this was no more a purchase of the lands than was the ad ranee to Prince Edward Island to extin- guish proprietary rights in that Province. It was merely satisfying a claim, the same as the extinguishment of the Indian title, and as such can only be regarded as an ad- vance made on the lands. There is, however, a slight difference be- tween the extinguishment of the Indian title, and the claim of the Hudson's Bay Com- pany, because the former is more for the pur- pose of securing law and order in the coun- try by quieting the Indians, while the latter was merely a business transaction. I hold to one principle, namely, that the public lands of a province ought to be vest- ed in itself as a means of revenue for its local improvements. If, in the case of the Northwest provinces, there are charges on the lands, let these be first satisfied, and the balance of the land handed over to the Pro- vincial Government. If this principle is not a sound one, then the public lands of On- tario, Quebec, and the other provinces of Confederation ought to belong to the Domin- ion, to be used in the carrying on of neces- sary public works, as are the lands of the Northwest to build the Canadian Pacific Railway. I contend, however, that the Do- minion has no right to hold public lands, except in that portion of the territory of Canada where there is no constitutional or responsible government to be sustained by local revenue. Look at the United States. Whenever a territory becomes a state of the Union the lands cease to be the sole property of the Federal Government of Uncle Sam. They are then administered for the united benefit of the State and Union. Why should not this system be the same with us ? The revenue of the Dominion Government oiiq:ht to be realized from indirect taxation, suth as customs, excise, &c., for the purposes of current expenditure and interest on the public debt. The financial investments of the Dominion •are merely the efforts of the Finance Minister to equalize or pay oif the public debt. If he is an adept at the work his loans and investments will result to the benefit of the country, if he is unsuccessful Canada will be Ihe loser. But I do not think it is advisable for the Government to en- deavour to undertake the management of railways after they are built — Governments, as a rule, fail in such work where private companies are generally successful. Govern- ments are very good in the making of laws and preserving of order, and of shaping the destinies of a country, but when it comes to the practical details ot building or working a railway they are generally found wanting. It is the same thing in the adminib- tration of lands. They are very interior land agents, especially when they have to deal with such a vast area of country as the Northwest. I do not mean, however, to throw discredit on the Dominion Lands office; far from it. I merely state that in having to deal with the lands of the Northwest in their present undefined state, they have more than they can properly perform. The only way to get out of this is to ap- portion the lands for railway purposes as soon as it can possibly be done, and hand over the balance to the provinces as soon as they are created. This will relieve the Government of a great deal of trouble and labor, and besides it will set three agents at work to populate and develope the country. First, the Syndicate to sell the lands ; second, the Dominion to realize on the lands set apart for meeting the cash expenditure on the railway, and third, the Provincial authorities to raise revenue from the sales of their lands for local improvements. Now, if these principles which I have en- deavored to describe were carried otit, how would matters stand ? 1st. Each province would be entitled to receive a specific grant for legislation and government, in proportion to the circum- stances of the case. 2nd. Each province would be entitled to 80c. per head on its actual population, as determined by a decennial census, except in It tB of Ibe oflf the ihe work lit to the '.ccessful lot think it to en- iment of irnments, e private Govern- of laws aping tho comes to working wanting. adminib- erior land ire to deal try as the vr discredit ar from it. » deal with eir present I than they is is to ap- urposes as and hand as soon as elieve the rouble and agents at le country, e lands ; the lands .;penditure Provincial the sales Ints. I have en- Id otit, how entitled to Uation and circum- I entitled to ilation, as I, except in the cases of the Northwest provinces, which would be regulated by a triennial census, j until tho |i<»|)ulatlon uliould reach 400,000. ' 3rd. The balance at credit of the capital account of each province to be at its dis- ; posal whenever it is shown to the Dominion ! Government that it is actually required for ' purposes of improvement, but no fintber ad- 1 vances to be made on province account by tlio Dominion unless in the shape of an invert- ment, for which security will have to be given and interest paid by the province. 4th. The system of making specific grants other than that for legislation and govern- ment to be abandoned in the future. 5th. The Dominion to define the public works in the provinces for which it will be liable. No province to undertake any such works in the future without the consent of the Dominion, unless with tho distinct understanding that tlw Federal (Jovernment will not be called on afterwards to assume them. dth. Each province to be possessed of its own public lands. Some such code of rules would tend, I thiuii, to harmonize more the relations be- tween the provinces and Federal Govern- ment, and under the third clause the Do- minion could make an annual advance to Manitoba on her lands until such time as they c(mld be lianded over to the provincial Government. The possession oi" the lands by the Dominion would constitute the security. Yours, Julius. 'I 'I- It maj merely tl ask that i be place than Mar the po8i< time. It Specific gi KUc per he tion of 7 Interest a credit ac which unl through tl the additi camber, U Specific grj 80 cents o populatit 6 per cent i The total L collected stand, is s Yet the € vince for lamentable placed in, i larged it w will probal above estii 1300,000. . be laised v revenue of : subsidy alio fefiK it is a p supplies it, i Manitoba ii favors rathei would remt instead of be full grown p What a I people to be living on tht were, of the LETTER VI. It may be s^nposed that I am advocating merely the cause of the Northwest, wlien I ask that the provinces in that part of Canada be placed in a more independent footing than Manitoba, at least, is to-day. Look at the position of that province at the present time. It gets a siibsidv as follows : — Speciflcgrant $30,000 00 sue per head on an assumed popula- tion of 70,000 souls 56,000 00 Interest at 5 per cent on the capital credit account of $i!93,U60.89 14, 053 04 $100,053 04 which unless further provision is made, will through the expiration of the laws grun+ing the additional aid revert back on 31st De- cember, 1881, to the following: — Specific grant $30,000 00 80 cents on ihe first estimate of population, 1,700 souls 13,60:) 00 5 per cent interest on $293,060.89 14,653 04 $58,2ar04 The total local revenue that can be collected as matters at present stand, is about 11,000 00 $69,253 04 Yet the estimated expenditure of tht Pro- vince for 1880 was $203,350. What a lamentable position for any province to be placed in, and when the boundaries are en- larged it will be worse, for the expenditure will probably be half as much again as the above estimate, or in the neighborhood ot $300,000. But how on earth is this sum to lie raised when Manitoba has only a local revenue of $11,000 in addition to the small subsidy allowed by the Dominion. I con- fess it is a puzzle unless Canada steps in and supplies it, in which case it would still have Manitoba in the position of a recii)ient of ftivors rather than of rights. The Province would remain a baby fed by the spoon, instead of being able to assert its privilege as full grown pciKon. What a humiliating position it is for a people to be placed in to teel that they are living on the goodwill and indulgence as it were, of the l3ominion. And be it remem- bered that the men of Manitoba to-day are largely composed of those who each accord- ing to his ability has helped to make the Dominion what it is. Now, is it likely that people hailing from Ontario, Quebec and the other provinces can be contented to live un- der a Provincial Government who can do little, if anything, in the way of progressive legislation, because they have no means of their own to carry it out. Does it add to the attractions of the prairie provinces to know that they are at best only paupers ? It is a picture of Dame Dominion seated at her table with Ontario, Quebec, Nova Scotia, New Brunswick, Prince Edward Island, British Columbia, her six favorite (thildren enjoying a good square meal, while Msinitoba gropes along on the floor picking up the crumbs. It is very probable that there will be three more babies born to mother Dominion in the Northwest, but 1 sincerely hope when they see light that they will not be starved as Manitoba has been. I am not merely advocating the cause of the Northwest ; I am appealing to the honor and pride of Canada, that a more liberal or more independent, a more just line of policy, be adopted towards the Northwest in the future than has been in the past. Give us our lands, or if you are not in a position to give them now, let us have a guarantee that we will within a few years enter into posses- sion of them. With that assurance Mani- toba would have something to go into the money market with — it could at least borrow on the strength of its inheritance, because it would have some probability of being able to repay. Save us from having to come to Ottawa any more with the oft repeated ap- peal, "Charity for the love of Heaven." And now that I have shown how Manitoba is being treated by the Dominion, let me show how the Northwest treats Canada. The prairie region is going to pay out ot its lands the whole cost of a railway, a purely na- tional line, amounting to nearly one hundred million dollars, while British Columbia gets $100,000 annually for the right of way of the said road. All chaif^es on tlio lauds are to be recouped ere any of tlienj arc lianded over to the Northwest, At priisent we contribute each year to tiie Dominion treasury in the way of custoniH, excise, sale oi" lands, &c., &c., 8oniethinK over $500,000 a« our share to the general fund, receiving in return only a little over $100,000 as subsidy. Jn the future what are we likely to do ? I will only deal with the revenue derived from customs and excise which, according to the returns of 1880, is just $5.46 to each person in the Do- minion, or, in other words, each inhabitant in Canada contributes annually in the neigh- borhood of $5.50 to the general treasury. Leaving any revenue to be derived from sources out that each is worth Is it too the popula- lands, timber mines or other of the question, we find settler in the Northwest to the Dominion $5.50 annually much to expect that in 10 years tion of the Northwest will amount to 500,- 000? I think not. I think that is a very low calculation, but taking it at that figure we have an annual contribution of $2,750,- 000 from the baby provinces as their share towards the general fund, a part of which will be applied towards paying off the public debt of Canada. But this is not all, each subsequent year will see a large increase to the population, while in the ordinary course of events there is not likely to be a corres- ponding increase in the older provinces, 'aO that the time is not far distant when the Northwest will pay one-half, if not more of the revenue of the Dominion. This is the inevitable future. The revenue to be de- rived from the Northwest is, however, only a small portion of the benefit to be realized by Canada. And right here is where the future salvation of our Do- minion lies; tor without the N orthwest to back it up, it would not be many years ere its manufactories would languish, and its trade become so restricted that if a state of bankruptcy did not follow, there would at least be a chronic state of stagnation. Let the people of the Dominion remember this fact, in support of which I have only to refer them to the history of trade in the United States. What has developed the great manut'acturing interests ol the Union il i( has not been the great development of tlu; Western States? Certainly it has not beiu the «'Xport of its manufactures to foreign countries that has built up its great indus- trial institutions. It has been the continui il increase of a great demand made by thi Western States, as they became more ami more developed each year, that has ut last placed the Eastern manufacturers of the United States in a position which to-day en- ables them to compete for the trade ot foreign countries as well as their own home demand. The rapid constructicn of the Pacitu Railway, and the conseriueut peoplin;: and development of the Northwest, will be the means ot securing to every poor man in Canada the source of comfort and happiness for many years to come, by providing a plentitude of work and a corresponding state of geod wages. It will be the same old story over again, as whs enacted in the United States — the West will supply the East with bread, the East will supply the West with the products of theii manufacture, the one is as necessary to tlie prosperity of the other, as water is to a man to keep him from dying of thirst. Thus the Dominion containing, within its limits all the elements of independence, can by the adoption of a wise policy promote inter-Provincial relations whereby one por- tion thereof will contribute to the mainten- ance of the other portions, which in their turn will supply all the material for the de- velopment of the resources of those portions yet unpeopled. But in order that such policy may be a perfect success it is essential that I no one portion of the Dominion should bo made to assume greater liabilities than are \ imposed upon the others for the promotion ' ot the general welfare. Thus, while eacli I individual consumer in the Northwest is a contributor in the same degree towards the general revenue of Canada, and is individu- ally liable for his proportionate share ot the debt of the Dominion, it is scarcely to be presumed that he can view with satisfaction the appropriation by the Dominion of those local resources for the benefit of Act of Coi property o liy them U Theg.e the contin existing the con fed adopted t< luiion so to the pro' he formed ■general pr the founde with the f the genera Uiii(»ii it it lent of tlic IS not bcrii to foreign reat indus- ! continutil ulo by th( I more atnl hllK Ut lilht ira of tlif I to-day en- le trade nf • own home the Pacitir t peopliii;: Northwest, ecuring to the source' ny years to le of work d wages. It gain, as was le West will ,e East will cts of theii Bary to tlie is to a mail within its [ndence, can ley promote ly one por- tie mainteii- |ith in their for the do- se portions such policy isential that should be 8 than arc promotion while each thwest is a lowards the is individu- inate share on, it is e can vicv' ion by the ■ces for the 21 i)eneflt of the whole of Canada, whicli, by the Act of Confederation, were allowed to bo tlie property of the Provincen, and administered Ity them for their benefit. The g. eat object of the iron band across the continent is to cement the bond of union existing between tlie ditlerent provinces of the confedi.ation, and no l)etter plan can be ivilopted to secure the permanency of that union so much to be desired than liy giving to the provinces already formeo late for the Dominion to do justice in the premises hy recompensing or reimhursing rather the Northwest provin- ces for the heritage which has heeu tiiken away from them. Now, let us look at the grounds on which I rest my case in sup{)ort of the position I take in this matter. I hold that the public lands of the Northwest ought to be handed over to the provinces as soon as they are created, ami that Manitoba, so far, has been seriously wronged by having her lands with- held from her own control. The British North America Act of 1807 provides as follows : — " In each province the " legislature may exclusively make laws in "relation to the management and the sale of "the public lands belonging to the province, " and of the timber and wood thereon." And in section 109 of the .same Act it reads ; — "All lands, minerals and royalties belonging "to the several provinces of Canada, Nova " Scotia and New Brunswick at the Union, "and all suras then due or pay- "able for such lauds, mines, minerals or " royalties shall belong to the several Prov- "inces of Ontcuio, Quebec, Nova Scotia and " New Brunswick, in which the same are sit- " uate or arise, subject to any trusts in re- " spect thereof, and to any interest other than " that of the Province in the same." This is what the British North America Act says in regard to the public landH. Now we will see how far the people of the North- west were led to expect that similar provis- ions would be extended to them when they became part of contederaticm. In 1870, during tho commotion that agi- tated the people of the then lied Klver set- tlement at the early prospect of a union with Canada, the principal feature of the demands made by them in convention assembled was that they should be invested with the juris- diction of the public domain within the Province, and in that respect placed on an ecjual footing with the other Provinces of the Dominion. To the clause in the Bill of nights stipulating for such, the answer was given by the Canadian Commissioner in the following words : — "I have been instructed by the Canadian " Government to make known to the v)eople " of the settlement that all property held by " residents in peaceable possession will be " seciut d to them, and that a most liberal " laud policy in regard to the future aettle- " ment of the country will be adopted — cveri/ " privilcf/e in this n'K/n'ct enjoyed in Ontario and " Quebec being extended to the territory ^ Consequently, in the same year the Mani- toba Act was passed, which invested the Federal Government with the management of the Crown lands of the Province. It was generally understood, however, that the Act was merely to be temporary in its applica- tion to the Province of Manitoba as far as regards the management of the public lands. There was no opposition, therefore, to its operation, it being believed that in the cir- cumstances then prevailing under the un- settled state of the community, any tempor- ary compromise hy which Canada could get peaceable possession of the country and es- tablish courts of law for the protection of life and property was better than to remain in a state of anarchy. Moreover the people were firmly assured, through the agent of the Canadian Government, that the same rights in regard to the public lauds would Boon he concede tario an( time (it In th( .lohn A |irt;pare( isulimittt which Excel lei luemorai appear :- " The '• is al»s( '• of Mai " hereaft " the SI " vinces " and Br "and lik <■ subject '' Legisla This c toba has : because i Kame stat as Ontari Bruniswic vince of lands to i [)iovemer] that a CO points to that Man yet to be not in thi position. Imperial provinces looked fc largemen place to t Governmi granted h raini8tere( revenue. In stra Manitoba that oflfert did that h Amuricii iuIh. Now the Nortli- iliir proviB- wheii tliey ti tlmt agi • lUver Hct- union vvitli le demands ml) led was 1 the juris- witliiii the iced on an inces of the he Bill of luisvver was jner in the ) Canadian f the people ty held by on will be lost liberal lire settle- )ted — cveri/ Ontario and ory." he Mani- vested the auagement It was at the Act ts applica- as far as Dlic lands. ore, to its u the cir- ir the un- ly terapor- could get y and es- ;ion of life emain in a eople were t of the ime rights Id Boon be 23 ( onceded to them as were enjoyed by On- tario and Qiiebt'c, the two provinces at that time cited. In the ytfar 1H7I v- •• crnnmnt of llritish Columbia agree to con- " vey to the Dominion Gt»vernment in trust, " to be appropriated in such manner as the " Dominion Government may deem advis- '• ablt!, in furtheninct; of thcf construction of " thoCaiuida huilic Railway, a similar e.\tent "of public lands tlirouj,Mi(tut its entire length "in Mritish C()lutnl)la, not to exceed, how- " over, twenty miles on each side of said ine, as may be appropriated from "the public laiuls of the Northwest 'Vva- "ritories and the Province of Manitoba." But in another part of the Terms of Agree- ment there appears the toUnwing : — "In "consideration of the land to be so conveyed "in aid of the construc^tion of the said rail- " way, tlu! Dominion Government agree to " pay to British Columbia, from the date of « the Union, the sum of $100,000 per annum, "in half-yearly payments in advance." Then, let us look at the case of Prince Edward Island, which had no public lands of its own when it entered Confederation. We tind that the Dominion Government made every allowan< t; for its poverty in that respect. Not only did Canada allow Prince Edward Island a credit capital reckoned at $50.00 ymv head on its population, while the other Provinces received only at the rate of about $32.43, but it also gave an annual grant of $45,000 in lieu of {tublic lands. This was not all, however, for we find by the j)ublic accounts up to 31st December, 1879, that the sum of $729,'205.95 has been advanced l>y the Do- minion Government to Prince Edward Island for the purpose of purchasing lands from the proprietors in that Province and vesting them in the Provincial Government. A large portion of the lands in Manitoba have been — I was almost going to say, frit- tered away; another very large portion is going to be . used in paving for the construction of the Canada Pacific for which Manitoba as a Province derives no benefit, and yet all I contend for is that the I 1 '. ; 24 balance of the lands be handed over to the Provincial authorities for purposes ot local improvement. But I am too modest in my demands. 1 doub very much if the people who, I can tell you without exaggeration, are beginning to rouse themselves from the lethargy in which they have so long slept, win accept so little when so much more is due them. They will be very likely to say that if British Columbia receives $100,000 annually for the Canada Pacific lands they ought to receive a like amount. I look forward to a very keen agi- tation on this subject of public lands in the Northwest unless something is done im- mediately to prevent it. I fear it will be the cause of a great deal of confusion and trouble to the Government. It may interfere with the development of the country and the progress of the Canada Pacific itself; it may lead to the people asking for the interference of the Imperial authorities in their behalf. The Dominion cannot expect a people to starve 'politically with abundance all around them. The posi- tion of Manitoba will ere long arouse not only the sympathies of the Canadian people themselves, but also those of the people of Great Britain. It is plainly, therefore, the duty of the Dominion Government to take this question up at once and deal with it in some way that will be satisfactory to the people in the Northwest, ere they find them- selves surrounded by difficulties which will retard the great national work they have but only now commenced in earnest — the development of the Great West by means of the railway and as a result the future welfare of our Dominion. Yours, JULIUS. i 1 h • * . f ',.: '!..'h: (h Imperial Dominion •politically The posi- irouse not Ian people people of refore, the it to take with it in ory to the find them- vhich will ihey have meat — the ' means of ire welfare -$ ULIUS. "V "^ I, Ji