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Lorsque Ie document est trop grand pour dtre reproduit en un seul clich6, il est film* A partir de I'angle sup6rieur gauche, de gauche d droite, et de haut en bas, en prenant Ie nombre d'images ndcessaire. Les diagrammes suivants illustrent la mdthode. 1 2 3 1 2 3 4 5 6 y. m i!ll Bl I ffl: PRII CAISTADA. BUDGET SR ^; HON. WILLIAM &4lELWNG, M.P MINISTER OF FINANCE IN THE HOUSE OF COMMONS . TUESDAY, 5TH APRIL 1898 ii m OTTAWA PRINTED BY 8. E. DAWSON. PRINTER TO THE QUEEN'S MOST EXOELLENT MAJESTY 1898 f f i I f c ^ ]sr ^ D A^ BUDGET SPEECH llHLIVKUEl) BY HON. WILLIAM S. FFKLDING, M.P. MIXISTKH (»F FIXAXCE HOUSE OF COMMONS TUESDAY, oTH APRIL 1898 ill i, n; IC IS 23 2.'? 2-, 30 30 34 33 37 38 f I ,1 m r g.'t ' C^ISrA.DA. BUDGET SPEECH l'l;l,IVKKKl> I'.V HON. William s. filldixg. m.p. JIINISTRR OF FINANCE IN Tin: House of Commons, at Ottawa, Tuesday, 5th April, 1898 WAYS AND MBANS-TIIE BUDGET. The MINISTER OF FINANCE (Mr. Field- ing) moved that the House resolve Itself Into committee to consider of the Ways and Means for raising the Supply to be granted to Her Majesty. He said : 1 rise, Mr. Speaker, iu accord- ance with notice, to malce the motion wiiich you have put from the Chair, and before con- eluding my remarlis I shall place upon tlic Table of the House a series of resolutiouci to which it Is my desire to invite the atten- tion of the House. A little less; >• la one year ago, under cir- cumstances 'Vi 'iifh perhaps marked the occa- sion as one of some importiiuco in the his- tory of Canada, I had the honour to deliver in this House my first Budget speech. In rising to-day to perform a similar duty, I am sure that I have ample grounds on which to coui^'ratulate the House on the con- dition of the country, and on the results of the policy of the Government which It was my privilege to announce to the House in April last. Canada has had an eventful year, a year marlved by great political ad- vancement, material progress and steadily increasing prosiwrity. 'the financial year 1896-97, which ended on the .'?()th of June last, the .accounts of whicli liave been in tlie i)ossession of the House for some time past. The revenue for that year yielded ?37,8l'0,778, as against $30,018,590 for the year 1S95-9G, or an increase of $1,211,187. The total expenditure on Consolidated Fund reached $.38,349,759, as against an expendi- ture of $,30,949,142 in 1895-90, or an increase of ^1.400,017. The outcome of 1890-97 left us with a deficit of $519,981, as against a deficit on the previous year of $3.30,5.")!. That, in brief, is the result of the year's operations on account of Consolidated Fund. Following the usual custom, I give the de- tails of the revenue, as compared witli the previous year : is'.ii;-!): IS'.in-lKl. , Increase. De- CiiHtoiiis..! lil,47S,-_M7 l".VS33.27!l . . lAtisp.. . !l,170.;frs 7,!I1.'(>,(K)5 l,LMt,372 Miscrilii- ncous.. . 0.1S1,1.V2, H,S:.!t,.'!S,5!M): 1,,')G6,21!» 355,032 1,211,187 355,032 FISCAL YEAR 1S96-97. ' It will be noticed that there was a slight Following the usual practice In Budget decrease in the customs revenue, which can speeches, I shall first ask the attention of the be attributed to the restrictive effect on the House to a brief review of the operations of Imports of the anticipated changes of the VI fiscal system Inaugurated 23rd April of last year, and to the reduction In tlie duties bo- twcen t'ciat date and 30th Juno. The large increase of excise is, of course, accountwl for as an anticipation of the current year's receipts, in view of expected cl' mges in the duties of excise. In the Itei.is composing mlscellaueous, the chief Increase Is in the receipts fnjm post office. Taking up the report of my colleague the hon. the MinlstcT of Customs, I liud that, on the following articles, Important increases In duty have been received :— Animals, living $ 17,122 Carriages 59,072 Kanry good." 9,902 Ola IS and manufactures of 10,760 Leather do 17,103 • Mis. coal, kerosene and products of 24,880 Sugar of all kinds 584,39f> Spirits and wines 221,733 Tob.acro and manufactures of 33,755 Watches 17,574 On the other hand, in the following articles Important de(;reases have taken place In the duties collected, as compared with the pre- vious year : Books, periodicals and other printed matter $ 15,371 Grain of all kinds 101,121 rioiT and meal of all kinds 36,229 Cotton, manufactures of 154,418 Flax, hemp and juto, manufactures of 52,137 Fruit and nuts, dried 68.337 do green 22,192 Purs and ni.mufaetures of 28.113 Gloves and mitts 40,943 Gulta percha a:id india-rubber, manufactures of 11,495 Gold and silver, manufactures of.. 13.660 Hats, caps and bonnt'ts 16,138 Iron and steel, and manufactures of 63,574 Musical In.^trumcnts 12,010 Oils, all other than coal, kerosene, n.e.s 30,293 Oil cloth 9,887 Tickles, sauces and capers of all kinds 8,192 Silk, manufactures of 166,636 Stone and manufactures of 8,917 T!u> del ails of the iucrease in excise are as follows : — ('(J.XSfMl'TIO.V OF SflUITS, &c. The per capita consumption of the following articles usually tii.ds a place in the Budget, and I give it, as follows :— Spirits, Beer, Wine, TobacL Galls. Galls. Galls. Lbs. 1891 ... 1895 ... 1896 ... 1897 . . . •742 ■666 •623 •723 3^7i;2 3^471 3-528 3 469 •089 •090 •070 •084 2-2t;4 2 •16-, 2^120 224:; It will be noticed that there is an app.iri.Mt Increase in the consumption of spirits in 1897, but that, I think. Is to be accounted for by the fact that in anticipation of the changes In the excise duties last ses- sion, very considerable .: i I Wino do -1" • Tobacco Lbs. 2^i;.! AVe come now to the expenditure of th. year. Mr. FO.STEIt. Before going to the "\ penditm-o of the year, can my lion, frien.i I tell mo what amount of the iucrease is iln.' I to the .Tubileo stamps of 180(i-97 V : The MINISTER OF FIXAN'CE. I ha\e not includod tliat In my statement, but 1 sh.'ill be glad to give it later on. The jio-i ottico revenues in the public accounts show- it in general terms. I shall furnish It Ituev on If the hon. gentleman desires. The expenditure on coiisolidtited rcvemie I reached $38,349,759, being an Increase nC .$1,400,017 over that of the previous year. Taking up the details of the outlay, I liud .\l-ticles. • ^•uaiititv. 18!h;. ■ (Quantity, 1.S!I7. ■ Diitv, l.Silli. Diitv. IS! 17. Inci f^pint" V.M: Mult L1.K Cipf.avs \i). Cipiri'ttcs \o. Tobacco iinci .Snuff Lbs, ->,.'i44,7(17 ,51.li!HI.L'7S 10.S,L".«l,-.'(i(l 80,4(11, '.)00 !t,3!lL',4S7 2,782,r)14 ()S,44;!.;!:):i ii:i.L'7ti,ior> !i;^,7il8,(KIO l(l,tl!)0,7(i.') •^ I ,3,!I7«.H(MI 77.\:C)i ll-lS,.l(iL' lL'0,tl!l2 i;.L'2H,(i;)7 7,74(i,50.") 4,732,r)0G; l,uL'r,.Ci.-i'.> H7S.I»2!I i;in,:iri7; L'.;«)s,44;4r).,ss-.? 2 2f4 2-16:i 2120 2"2-lo l-02i, 2 'Ml ■lH't 2-17.1 tbat in the f.,ll<,win« servicos there is an hone th.t ,„v I.",, .■ • . inereiised exiieiKliUiie • • ''" "i«->iuls opposite will I"tere.u o>. public Uebt . . ,.43 ^3. h mTv "t'm'.','.. '"T""'"'' '"'"' "" *"" ""-'^ SinklnK funU« ::;; J^.'^^;^ I'lVdietions wlii.h Iliey n.a.le i-espectil." Ailnilnistratiun uf justice. ! .■.':; Tfi'J'/i ' '''"■""- '"""-^ "I' 'li.^ lirst session ,,r tliis LSr^^!":"^^.;:: ■■' J^ ; ■'••'i-n-nt. ,ny ,.,„,. ,•,,.,„„ ,„e lea.le.- of ,i,e I'eniteniiarios .:.::: ^^^'^i* " 'I'l^osKion (Sir Cluirl.s Tnppef) an.l inv Arts, agrlculturf and statistics . . . .' is'sia ''^'"- '''•'•'""I tlie ex-Miiilstei of Finance (Mr yuuS"",. .H3l> iM'ster, n.a.le vry s,ron;r a,.„eks npon \uo i;j^^^''"^^ ■'■.■.■.■::::'::::;: 4^1 """'"■">' i-^i'i.-n of m.. •jovemment, ;,n,i pV, I'i'f ,;•• ■ •, , 530,'874 i'lcdicletl that very direful tliin-s wonM Ka!ilv;,>^';:;i:r,.:.'x';:':\"^^:";'^-: ^'ft!^ "='""•■" -^ "- "-t year of ..„erar;,.u,;;us Mail subsidies and steanistil|) ?ub- ''^ tiation. I do not propose to det'iii. flif» Ocvan and riverservice \^'s,r ^""'^' "'"' '*'"-f''-^' «lUolatiolis from their Marino :,ospital.s '. {'jl^ remarks, bnt I may stimnmri/..' their pre- G!;:^;o«;cai suVvev:;:::::; ]i^f; ;"';'7V'"''^ '"■'^'"^' ^'^ "••"• •"'•'«"'- ^"i- Subsidies to i.n.'vinces... 2394 '*''' "'''' "'^ ^vere entering upon a year of rustol.'r »v393 in una.teia; disaster. They declared that jL'""' "'"^-^^ ;:.:;::::;: 124:4117 "'"'■" """ ^•'"■'■«'»t year ..f isdcot. r wonui Trade and roMHm.ree 5,141 he ol,lif,v,l tr. borrow at least .^HMIOn <,(„. On the othe:- hind, there have been de- •■I'ul th.it I would liave to r„ on the money crea.ses on the following,' :- market under conditions that would sreatly SiiperaiiniatloM j 043(1 ''■■HHMyv our puldi.- credit. Thev will ? hope S;;^;L!:td coast -s^^vi^e ^^ '" r"'""" '" '""■" '"^'^ ""'•'"^ •""' '•"'•- Seieiitiiic in.stitutlons "i'to" '' •*'*''■'"" "'■' '"'' ^^"^ have to ^o on tlie Govrninient of tlio .N'ortb-west Ter- ' ' Kdieral mmiey market at all • that onr tr.tMl r;tones in ic7 » , ■".n i>m 101.11 Excise '■'.".'.'.'.'.['.'.'.'.[['. iim feinporiry l.orrowiiiL.'. in the usual way of WelKtits and measures and rus.!.'! (J'l.V) ffcasinw bills, did not .'imount to ten million DoS;^^^;lds:'"''^^°"''^"°°---- 'i^^l •""'"■■^ '^^ •'^■'^" '"^"^ "f ten .nilHon dollars ; Publli- Works, coliection.... !!!!!!] n!sn2 '^"'' ^''-'t ^'e only liorrowinj; in wlilcli we The niain increases ,vill be found to he '"''"'««'''• "^''r and above the renew.il of a in tlie interest on public debt, legislation. '■""' emitr.iclcd by my predeces.s''e''t even then h<. predict d •Hb? !^ H Y. ' '■'■'""'"' '^''•'' ''•■"■'" f""^ ''-^ «-l'l »"t ..onie out of he vear will, r nm .sure, be jrlad to learn that we PREDlCTloxs AXI) HESULTS. i came out of the .vear with a deficit, not of T„ , ,. $:!.2,-)0.000, not of .SL'.OOO.OtX), but of the mo- m conciudinK my ol)sei'vatinns upon tlio dost sum of SolO.OOO. business of ilie fiscal year lS!J(!-0 tiie 30th of June last, let [y hon. friend ", endli^ i that in the first year of Liberal ad mo express the tration we wotdd have said minis- au expenditure of i \ ;.. t i at least forty million dollars. He will be glad to learn, I hope, that the expenditure of that year amounted to only $38,340,750. My hon. friend Haid that he could appeal with confidence to the great arbiter, time, to decide these thinRs. Well, the great arbiter has given judgment, and has given Judgment against ray hon. friend and in favour of the Administration. I suppo.se it would bo too much to expect of my hon. friends opposite that they will take the cheerful view which we. on tliis side, are disposed to tako of the piospoctn cf the country under .a Liberal Administration. I suppose it Is even pos- sible that their sense of duty may oblige thoni to continue to draw the same alarming picture of tlie future under Liberal rule. We, on this side, will have to comfort our- selves with the thought, when we have these alarming predictions, that time, the groat arbitor, will continue to decide against my hon. friends and !n favour of the present Administration. REVENUE PROM THE LIQUOR TRAFFIC. I have given .some figures respecting the consumption on spirits and intoxicating li- quors, and it has occurred to me that. In view of the agitation on the subject of pro- hibition, which Is lilcely to be continued and to take a more eini'hntic sliape at an early day, there will be frequent references, no doubt, to the amount of duty and the reve- nues of the various departments of the Government arising from the liquor traffic. I think that, therefore, it might bo conveni- ent to include in the Budget a statement siiowing exactly what are the revenues de- rived from that source. The statement is for the year 1800-07. Quantity. Duty. Cu.stonis— .\le, beer. &c... Galls. 327,216 i C5,24,') 30 Excise — Malt Lbs. 6S,443,'?u3 1,020,652 13 Customs — Spirits and wines. O'ls. 1,396.136 2,406,523 81 Excise — Spirits ... Galls. 2,782,514 4,732,506 19 Or, Customs $2,471,775 11 Excise 5,759,158 32 Pummlng It up, we find that the revenues re- ceived from these sources are : Customs. 12,471.775.11 ; excise, $5,750,158.32, making a total revenue from that source of $8,230,- B33.43. THE CURRENT YEAR, 1897-98. So far, Sir, I have dealt with the flnanclal year ending June last. Now, let us , turn our attention to the current year, of which nine months have elapsed. With this clapsad period as a basis of calculation, 1 shall endeavour to estimate what our posi- tion will probably be on the 30th June next Up to 31st March last, according to ti\e latest statements wo have obtained, our cus- toms revenue amounts to $10,111,020.82. Making due .nllownnce for the Increase we have lately been experiencing In the receipts from this source, and keeping In mind that after 1st July the preferential feature of our tariff obtains Its full developmeut and con sequently there will be a slight check In the Imports In May and Jime, I think I am within the mark when I estimate the cus- toms revenue at $21,000,000, as against last year's yield of $10,478,247. From excise, I do not expect to receive more than $8,000,000, as compared with $0,170,378 received hist year, oa account of ^arloufl disturbing causes. Ac between the two years, there is no doubt our revenue this year from that source will be less. From miscellaneous sources I antici- pate our revenue will be $10,300,000 ; or $30,300,000 In all. So much for tlie revenue. On the otlwr hand, the actual expenditure up to the 31st March on account of consolidated fund amounted to $22,087,2,'>8, whlcli Is just on about a level with last year. If we take into account the fact tluit there Is a quarter's post ollice expenditure of last year wliicli does not njipear this year but will come in at a later stage of the accounts. We must add to the outlay against us the expendi- tures which will be Imposed upon us In con- nection with the opening of the Yukon dis- trict and the miilntenauce of law and otder In that territory. So, to be on the safe side, I put the total consolidated fund expend!- lure for the current fiscal year at lyw.T.'iO.oiiO. If this estimate proves correct, and If we re- ceive the estimated revenue of $30,300,000, the business of this year, closing the 30th June next, will end with a surplu.^ of $,"i."j(»,- 000. A PROBADLB SURPLUS. My aim and expectation In that respect are tliat we shall have In this current year s Burplu" which will wlp« out the tleflpit of la»t year, and leave a balance, i)ossi1)l.v even a larger balance than I would now care to state, on the right side. I fool conlklent tliat this Is a safe and conservative estimate of the result of the year's operations. Some features of the year's business have been so almormal, there has (ieveIope(J such buny- .'iiicy in trade, that I should not he surprised If the outcome of the year should be more favourable than I have indicated. The total consolidated fund expenditure fm- the current year I liave just estinnted at $;!S,7.")0,f)0(», or some $400,000 over last year's actu.nl expendi- ture. The reasons for this are to bo found in tlie additional Interest on the i)ul)lie del)t tliat Ims to be paid on .'iccount of the loan of last autumn, the necessar itlay in connection with the opening up i,. the Yukon district, an Increased outlay resulting from a vigor- ous policy to be pursued In the Departim^nt of Agriculture, and also In the liranch of the Department of the Interior which has spe- cial reference to liiiuiigr;itiou. The extension of the Intercolonial Kailway to Montreal will also go to swell our gross expenditure, al- though I am assured by my hon. friend the Minister of Railways that tlie Increased out- lay will be offset at an early day by increas- ed receipts that will accrue from the working of the ex:tension. Although our borrowings in London, last October, as I sliall show, were less than half the amount authorized, and it might be supposed therefore that we should have occasion again to resort to temporary loans at an earlv day, I am glad to be able to say that, owing to the btioyancy of trade and of revenue, our financial position has be- come so strong that 1 do not anticipate that It will bo necessary, during the current year, to issue a single Treasury bill or borrow any uiunoy in any shape or form. DEBT STATEMENT, 1896-97. j I desire now to refer to the debt statement for 1890-07. On the 30th .Tune, 18!)(), our net debt stood at $2.-.8,497,4;?2.77. As a result of the year's operations, it has been Increased by $3,041,ira.(i9, the details of which are as follows :— I Exiiemllture on Capital Account ' and on Canadian Paclflc Rail- way . $3,519,875 59 Dnficit of the year r>l!t,!isi 44 Hallway subsidies 416,955 30 Ilobelllon In the N.W.T 3,284 64 Consolidated Fund transfers, including liablUtlea incurred ; prior to 30tli June, 1896, Post Office Department 682,880 52 ToUI 5,142,977 49 Less—Sinking Fund Investments 2,101,813 80 Net Increase 3,841,163 69 Mfklng the net debt on 30th june, 1897 $261,538,596 46 For the current fiscal year. I find wo have expended up to the 31st March on capital account, for railway Bul)sldles and for dis- counts and charges in connection with the late loan. In all $4,500,185. To complete the year's requirements on capital account and railway subsidies It Is estimated that we Bhrtll need $3,000,000, making a total of $7,500,185. In order to ascertain tiie net In- croasi' of our dei)t, we must deduct tlie sink- ing fund investments which are estimated to amount to $2,300,000 and estimated sur- l>lns (if .'i;,">."i().()0(), leaving ;in increase in the net debt of $4,500,000 In round numliers for the year 1897-08. Mr. CLANCY. Where are the cheers ? Mr. MACLEAN. We are sitting on them. THE YEAR 1898-99. The MINISTER OF FINANCE. We pro- pose that hon. gentlemen opposite shall con- tinue to sit on those chairs for a long time yet. With regard to the fiscal year begin- ning on the 1st .Tuly next and ending on the 30th June, 1800, It Is, of course, too early at this day to estimate in more than general terms. ITowctver, I do not think that, so far as the customs revenue is concerned, we should fall behind this year's income, which I have estimated at $21,000,000. We have to remember, of course, that on tlie 1st .Tuly this year the second stage of our preferen- tial tariff will be reached, and the reduction of 12J per cent already accrued will lie fol- lowed by a further reduction of 12i per cent, making a total of 25 per cent. The first re- duction of T'J per cent was. periiaps, not largo enough to make any great change In the stream of Hrltlsh imports. Resides It takes time for the Rrltlsh merchant to un- derstand the operation of these tariff changes, and Just about the moment when he became aware of the reduction, and was prepared to deal with It, tlin dlfUculty arose wltli respect to the Belgian and (lorman treaties, which resulted In the so-called pre- ference being for a time extended to a large li ' i< I 10 uumber of countries, and therefore Great Britain was not in a position to enjoy the 12i per cent reduction as fully as we had expected and desired. Mr. FOSTER. The difflculty arose before that, did it not ? The MINISTER OF FINANCE. No, only in the minds of my liou. friends oppo- site. There are no ditheulties in this ques- tion on this side of the House ; there were ditlieidties which my hon. friends opposite for years sought to remove witiiout success, and wliicii have been removed by this Gov- erument. I expect, therefore, that when the full reduction of 25 per cent takes place, when tlie prefereuce is confined, as it will be, to imports from the motlier country ! and from certain Kritisli colonies to which \ I shall refer, I expect there will be a con- j siderable increase in imports from Great ! Britain, and on tliese imports we shall ' receive a smaller amount of revenue than | we have hillierto received. With a view i to maintaining our position as a sound i one llnancliiUy, to uphoIdiUK our credit and guarding against deficits, it will be tlie part of wisdom to anticipate loss of re- venue in that respect by making some in- crease to tlie revenue in other quarters, and of that I will speak later on. Excise should provide at least eight and one-half, millions, and from miscellaneous sources, ' making due allow'inces for increase iu rail- 1 way receipts, from post oflice and interest j on investments, we should receive eleven niililoti dollars. These I estimate will give us a total revenue of .fJd.r.OO.dtH). I am ' speaking now of tlie year beginning on the . 1st of .luly next, concerning which, of; course, our estimates will have to be of j a very general character, with very little opportunities of comitig to close quarters,! nor such opportunities as we have with re- 1 gard to the current year. We have laid , on till' 'i'Mliie of the House tlie Estimates! for ISIIS-!)',), to the extent of .^liO, 124.000. These lOstlniates Include two new items, one of ^;>!l(i.(MM> for tlie expense of the Yukon district, and another of $7(10,000 for the running expenses of the Intercolonial Rail- way extension to Monti'eal. Under our method of keeping accounts, the increased cost of operating the Intercolonial Railway has to be added to our general expendluirt . even though it might be a source of protit to Us, represented by an increase on thf dili. ; side of the account. These two new itei.is for tlie Yukon and for the Intercolonial Ua.;. way, items which were not necessary .;. our past Estimates, but that we all nii.u; nize are necessary now, amount to $1.15t;,uoii. If we t.'ike this from the total amouur i.;' the Estimates, it will be found that ihr remainder. .'jiyS.KlS.tXX) is about the sa;i:.; as asked for in the main Estimates i.ii tlie current year. KVIiM':.\cl':S Ol-' I'liOSIM^IttTV THE i)\\;; hi:tl'I{.\s. In April last, iu the course of luy w marks on the financial outlook, I exprosse-1 my lielief that when tlio details of !li,' tariir were once settled and annouiicil, trade would not only continue to How in it< usual channels, but that we might v\\uh-, a large increase. When those words a\ fl- uttered, the circumstances that I thi'ii im umerated pointed unmistakably in this (l;;ii - tion. The good harvest, however, and in- creased prices have since that timi' l.'iit their force to the tide of events, aii'l ili'' jieriod of resulting prosperity that Caiuida is and has been for some time past eiijuv- iiig must be indeed gratifying to rvpiy luiii. me'inber of this House, and to ^m ry citizen of Canada, and must conlinu nir conviction tliat we all have as to the ■,:vv:\i possibilities of the future developiuciii u,"' our country. I am sure, Mr. Speaker, you will bear wiih me when 1 turn aside for a moment u> ciiuin- erate a few of the directions in w!iirh lii!-- (l(>veliii)iiient and prosperity liave niMili' ili'"ii- selves felt. I propose to spi'ak lirst as au '11 i- tratiou of the increased prosperiiy of ill'' cmitiiry, of the increased business of ilie country— -I propose to sjieak of the di'pn-ii'^ in the banks. In tlii' bank circuliiliiii tli' effect has been must iirououiiced. I iieeil ii"! weary the Hous(> l)y giving tlie details ni ;h ■ bank .s'tatenietits, but 1 may present a :aiil'' showing the deposits in tlie cliartci'ed li.n.i-s for the jiast six years, logeilier wiili ;!■ totals : 1 ."f'tli June, is: oOth June, IS! ::i'ih June, 181 ■;"'.li June, 1S[ Si til June, ISfl ."C'tli June, isn 3Ut December, Tli;it is to .say .Tune last to increased by To carry m the country il 31st October, 18! "l^t October, IS! 31st October, ISC 31ft October, ISf 31st October, ISS 3M October, 1S9 .\rr. FO.STER. if lie took thi I'lii' the (ioverni Tlie .MIMSTK lii-'iires ill lidih Ori liber, bSPL', a 'l:i!c e.'lcii year. 'i'he (Jciolier < I'lile, the highest ilii' moving of tl millions of dollai four preceding y, bw, LSI)-, i-eiiuir increase of close The volume of country w,is sue l-!'ease thfi (|rrfr;..-.._ 'ive principal llaliiax, Wlnnlpe 11 30th June, 1892 30th June, 1S'X\ 30th June, 1S04 ; 30th June, ISS," , SCth June, 1S9(! 30th Juno, ISO? 31et December, 1897. Charterocl liariks. Govt, .'^ivings Banks. $ 160,942,778 170,S17,-1.S,S n4,930,fl3« I 1S0,664,121 I i iS3,7(;o.;(02 ' :-''n,i4i,6ss ! 222,002.147 ' |! 39,.^29..-,47 41.S49,«.-,s 43,036,012 44,4.'0.4riS, 40,790,;;iS 4S, 934, 117.-. 49,4(;fi,(;-,« T.ital. ! 2011,472, 32.J 212,t;(J7,091 217,966,94S 22.-;,114,ei9 23M,j''i0.3IO 2.".o,07';,i;(;;! 27i,4ns,so;i bank notes, iii.i,' system I append Illation for Gnvernnioiit. Uank.s I ! fO Total. 3lBt October, 1892 31st October, 1893 31st October, 1894 31st October, 189:i 31st October, 1890 31.n October, 1S97 $-!'?,fi8S,429 :!ti,90C,941 34..-)lfi,fi,-,l $18,647,003 lfl,S44,24S 22,212 SS4 34,671,028 I •"> 893 -^lO ' I -, . ,.. . , 3.-.,9,-M.1,-,0 I 21.0(i7,.-,.-,3 i I ^I,■"lS0,92S I 24 7.-1 Ti" ' J."7,33.",49'> •"6,751,18) 36,729,53,-. .-7,.-.64,287 •-7,.->fi2,70;{ 66,332,860 ^rl•. MJSTER. May l ask my lion. friou.! do'irin..- • r ,. h ., if IH. took tho .san.o ,lato in each c-tse ' ;l.""f '^ '" . '"^V'"^ •V^'"'''^. ^Si»--i. l>^-."i an, for the (iovernnieut hauk iLnu'es '' aceord.ng to the "Monetary Time... $1 0.39,967,000 1,025, 9611,(100 1,151,9iii;,ihjO The MI.M.STiOK OK FI.\A.\( 'K. Yes, the Ly.". li,i.'iir,..s in iioili eases are for the 31b't of ^'^•"' .'.'.'.'.'.'.'.'.'.'.'.'.'.' Ociolier, l,s-JL>. and uomin-ilug at the same "''' ''"'' '^''"^'" '*'■ "» I'K lease of !?l:>(i,00O,()()0 in tlie ch'af- Tlie Ociober olivulation. wlijch i.s, as a '"*-''' '"' l"*!'" «ver l,S!i(!. Kor the four weekly rule, tlie liighest of the year, on aceouut of I"'''i'"l>^ -<'"iliiiK Thuivsda.v-ln .Tanuarv. 1S!W, tliu moving of the ei-op.s, ran al)out m or r.7 ""-' ^"''''' ''•''"'•iugs were J?108..-(»!i..;7:!. a-ainst millions of dollars for the year IS'tt! and the 'f'^'*'"'*! •'>"<> f'"i- the similar periods ..f .lann- foiir precediiiK years. The business of Octo- ''"■'^'' ^''^'•'"' "'" "" 'lU'i't-a.se of over !flS,(K)0,0(H>. bur, 1.S1I7, rcMiuired over (J(i nillllon.s, or an ''"'' '•''''"■'""■>' '-T^t the tolal clearinRS for mciva.so of close to nine nilllioiis over 18'J Ti.e volume of the genera, business of the 'ml^TZ::^ ^i^';:^:^^^'' "^^•"""•^'• ""»ry w:,s such ns to very marke^lly lu- , .V-i.. ......0. Colli] '-■rc'isc live Hal if the agsregatr bank cU-i principal iwlly niuKs of the :An.\V,\V TUAKFK dies— Montreal, Torontc i.v, Winnipeg and Ilanill The railways, t Ion. The total lioneflts of oo. have this upward movement experienced the in trade , .;l! 11 ^1 12 and the published traffic returns are an In- dex of the extent of the betterment so far as they are concerned. From 1st July to the end of February last, the weekly state- ments of the two great railways of Canada show continual and steady increases over tlie corresponding weeks of last year. The gross receipts of the Canadian Taciflc Kail- way for tlie year ending 31st December, 1,SU7, were 124,049,534, against ?20,(;Sl,r)m; for the previous year. The gross receipts of ^ the Grand Trunk lUiilway, according to tlieir weekly returns, for the same period were ?ll),r>21.588. against $18.731,HS5 for the previous year. The increase in the earnings of the roads is mainly attributable to their freight and live stock business. The share and bondliolders have, of course, proflted by the improvement in the earning capacities of tlie roads, and the market values of their securities have advanced by bounds. Take tlie Cauadian racific Railway ordinary ?100 sliaivs. Tl-e closing price of December, 189(!, was ."ifii ; the lowest price of IS'J" was 40'i, and the latest December price was 83?. The closing price on 29th of January last, ac- cording to the '• Economist," was 91j. In Grand Trunk securities the advance was eqiiaiiy marked. Taking tiieir 4 per cent guaranteed and their first preference slocks. I find tlie lowest price of 1S97 was 39J and 3()i resjiectively. while on the 29lh January tliey were quoted at 70i, 77i and 07i to (!8i respectively. Taking the Canadian Pacific Railway stocks quoted in the " I'^conomlst," and the principal Grand Trunk issues, I find that securities of these two railways to the nom- inal value of £88,187,4!)7 were worth on the market : On 31 si December, 1S9."(, £48,814,- 887 ; on 31st December, 1890, £,')0,430,013 ; on 31st December, 1897, £02,317,910. TRADE RETURNS. I will now take a few figures from the Ti'ade Returns for 1890-97. The total value of the imports into Canada for the year amounted to 1119,218,009, which Is nearly a million and a quarter of dollars In excess of the previous year, and over eight millions in excess of tlie fiscal year 1804-9.->. Canada's export trade during the year was, by far, tlie largest and greatest in its his- tory. The total value of the exports for tiie year amounted to the sum of $137,n,")0.25.'!. which Is over 10 millions of dollars In ex- cess of the previous year, and 24 miUIons In excess of the fiscal year 1894-95. The total value of the Imports for Ihhd.' consumption, exclusive of coin and buii on. for the ei.jht months of the current year, uii to the end of February, amounted to ifSn.- 821,831, which is $12,081,330 in excess of Uio corresponding period of the last fiscal year. Including coin and bullion, the imports for home consumption for the eight iiioniljs anioiinted to $83,785,737, which is $10.rin(I.SI,-| in excess of the corresponding period of ilit> last fiscal year. The total exports for the eight nioiitiis amounted to $119,044,404. which Is $20,-l.M,- ■521 In excess of the export trade for the corresponding period of last year, and wliioh is also in excess of the export trade formiy whole year in the history of Canada, jn'ior to 1890. AGRICULTURAL PROSPERITY. While we hava thus placed before us the many evidences of tiie growing prosperity of Canada, let us not be unmindful of the chief causes of this happy condition of affairs. The general business of Caiiaiia lias been prosperous because prosperity li:is ruiiie to tlie great .'igricultural class. Tlii'ic hiivo , been some mistaken notions in tlie past as I to relations between manufactures ami agri- culture. Tiie idea existed in some (piuriers that we could build up a prosperous fanning community by stimulating niauiir;ifiiiri's. Tlie iiome market was everything, ijaii- ada for the Canadians was the cry. Tliere are some tilings in which It is well to liave Canada for the Canadians, iuit wo would do well to put a wise limitation on the meaning of the expression, and seek for prosperity through the markets of the world. I think the country has awakened lo iIp' I fact that, in the effort to make prospiM'it.v ; for the farmers through the stlmulallng of manufactures, the cart was being iiiiici'd before the horse. If we can fill u|) the f:irin lands of Canada with indiislrlous, prospering I and happy settlers, producing, not for iln' j Lome market only, but for the iiiarlvcts of the world, we shall have the truest pnssi ble foundation for a successfiU manufactur- ing industry and for general jirosperity. 13 Let us tluni, while we rejoice In these fi^'iiros wlileli I have the privilose of pre- sentiiij; to the House, and while we rejoice In this prosperity, let us rememlier that that liro.sperity is due chietly to the success of the farmer, aud let us see that by every reasou- able and proper elTort we suall endeavour to encourage the devolopineut of agriculture throughout the Dominion of Canada. THE 2i PER CENT LOAN. I desire now to draw the attention of the Eouse— though it may bo necessary only as a matter of form— to the new loan which I had the pleasure of raising on the London marlfet last autumn. You will recollect that a lyoan Act was passed last session for $15,000,000 Ti:ere were outstanding bor- rowing powers at that time to the amount of upwards of $8,000,000, and that together with our powers under the Act of last ses- sion, gave us borrowing powers to the amount of upwards of ii!23,000,000. The objects of these large borrowing powers arc well known. We had entered upon large expenditures in respect to canals ; we had Incurred considerable obligations in respect of railways, and it was necessary to make irovlsion for these as the obligations might arise. I may say that at the time the Loan Bill was before the House last session, the impression upon the minds of some hou. gentlemen was that the .?]r.,000,000 was rather less than we should require. How- ever that may be, taking the $15,000,000 which Parliament authorized us to borrow together with the $8,000,000 outstanding borrowing powers, we were entitled to bor- row $23,000,000. We did not, however, think : it wise to exercise that power to the full : extent. We came to the conclusion that it would be f wise policy to make our new j loan for a moderate amount, and it was ilecided that we should make a loan for! £2,000,000 sterling, or about ?10,000,0()0. j There were several reasons for tliat. Wo did feel hopeful, in view of the growing prosperity of the country, that we should < not need to borrow so large a sum as many lion, gentlemen thought would be necessary ^"■' there was the further consideration! and that after due dellberatioB we resolved to tr.v a very serious experlmeut-if one can onll anything like that an experiment-we resolved to take the somewhat serious step of making a break In the rate of interest In the London market. Canada up to that time had no .securities below 3 per cent, nor had any other colony. In view of the favourable condition of the money market ; in view of the high position of Canadian credit ; in view of the general tendency to- wards a reduction In ttie rate of interest, we tliought the time liad come when we could maice the experiment— some called it a bold experiment-of going „n tlie London market and jisking tlie investors to buy our bonds at a 2* per cent basis. And, Sir, h.iving thought that matter out, we came to the conclusion that it would be a wise l>olicy to make our first loan at tliat rate for a very moderate amount. We so decided for this reason : that In going upon tlie market with a new loan at a new rate, one always has to meet a certain degree of prejudice ; on(> will never get in a first oper.'ition of that character so good a price as may be expected later. We thought therefore, that If we could get along com- fortably with £2,000,000 sterling, it would be wise to confine our loan to that amount In order that we might establish the market for our securities on a 2* per cent basis, with the expectation that they would in- crease In value and that at no distant date, when it would be necessary for us to go on the market for the balance, we should have our credit fairly established on the 2i i)er cent basis. Believing the moment fav- ourable, in the month of October, we .'irranged to place oiir loan upon the market. The conditions of the market up to that time had been reasonably favourable, but the money market did take a slightly unfavour- able turn at the eleventh hour of our trans- action. After our prospectus had been is- sued the money marlcet hardened some- what, and on the very evening before our tenders were to be received, the Bank of England rate— which Is the standard which governs all money transactions in London- was advanced a half per cent. Taking t'uch a serious step as wo were at that time, one might well have some anxiety as to the result In view of that unfavourable turn. However, I jim glad to be able to state that so strong was the position of Canada In the money market, that when this proposal was made, even under that momentary adverse circumstance, the re- ll! . j II I i p n a i\ u spouse of the public was very satisfactory and (lur loan was more than doubly sub- scribed. We i)laeed the bonds on the market at the price of 91 and they were taken at 91 pounds 10 shillings and 5 pence. ConsiderinR, Sir, that it was the first oper- ation of the kind that any colony had ever attempted, I feel that we all have great rea- son— and I am sure my hon. friends opposite will join iu my tvords heartily when I say it— we have all great reason to congratulate ourselves, irrespective of party, upon the very high position that Canadian credit has taken iu England. I have here a statement showing the rates of interest that have been paid for the various Canadian loans since Cdnfodoriition, and as it may be found use- ful for future reference I shall read it. In 18G9 Canada Issued a loan which was partly a guaranteed loan, one portion bear- ing 4 per e(nit and one 5 per cent, at a price which made the cost to Canada 4} per cent. In 1873, another loan was issued which was also a guaranteed loan, and the cost to Canada was 3 9-lOths per cent. Of course I need hardly say that where a loan had the guarantee of the Imperial Government tlie rate was more favourable. In 1874, a Canadian loan cost Canada 4J per cent. In 187."!, a loan which was partly guaran- teed cost 4J per cent. In 187(!. a 4 i)er cent Canadian lean cost 4'f per cent. i In 1878, a guaranteed loan cost 4h per cent. - In 1879, a Canadian 4 per cent loan cost 4* per cent. In 1884, a 3J per cent loan cost 41 per cent. ' In 1885, tlie cost of a 4 per cent loan was 4 l-l'2th in one case, and iu another class of bonds 4 1-lOth. In 1888, the cost of a 3 per cent loan was 3i per cent. In 1892, the cost of a 3 per cent loan wjis 3i per cent. In 1894, the cost of a 3 per cent loan was 3J per cent. In 1897. our 2} per cent loan was soM in liondon at a price which repre.sents abnut 21 per cent. MKMO. rr CANADIAN LOANS. mm. 1873. 1874 1875. 1870. 1878. 1870. 1884. 1885. 1885. 1888. 18! (2. 18!t4. 18!I7. *l,.'"i(KI,(IOO *i,r)Oo,o()o, *3U0,00O| 4.0(H),(HX) *l,r)mi)raiiiliiiii showing the comparisons between tlie vari- ous Canadian loans for some years, and this comparison has usually found a pliice in the Budget speech. If the House will per- mit me I shall, without reading it, have it incorporated in the stJitenient so that It may be convenient for future reference. 1 "sjii.ir I* )S.>.1,)JUJ |) ••»1!1|)-Mllllll r. -la /"iiniir tf. •KJH9iC 'Ullorj •SnjDrHls 1*1 11 li s :t, ;i 41 « ■1,\ ■* t •1 .II 10 .ll 5 'i 3| 2 5 ;t,i I- c c 6 •JSU.))UI jO .m!}.( 15 3_i — 1^ — ,- i ,- i L- - •- ■>> 3 - ^ Si^fSi'^SiX >', 1 5_*:"_iiJi_2j-_ =_'--'-= .-■•■> -T ~. ''. '■, -•■ "' X X -T 5 :-;i":c ~ 5 "I — ^: Ti Ti Tf TI-r'^:■•i■^;'^r^i_; ■'41M| ■sju.miAi.'.l 5.ii;(l iKi •mi |)in! S)H,)||1A"V(I j wmiin .in} hiik,,) i ,: i 2 =■- - C-. .j: -^y.t,~^-.".C. J § I ; ?j I yilJljj^g"" ^ ?1 Hi 31' I-' ;;' i-'-rrirri- — -p'«; - ^ ' - " ■'■ ~- '^ ^: !r ?^ Ji f I a: ij ,™ » v: -; -._ .. O 5 .i r. — ^ ,■* ^ ^- •■/ I7 ^ - i'^ '= I- I"' L- ^r-f:-;-^-^-!'.;-;^- I «^ " CC T. Tf tT T. -■-.;• A' r;?! 2^ ii X •,; _ • I ••^•.ri!5~ ■u ■ . 5 *»*»=, .-J : •j3 " - - ?: U 1^ ?: ■ ^=1 Vi ~*, ?; ? - " ? • ■'?' 2'^' ■'■-'■ 1-1^ •s.llM.t 'uvorj JO HOl^lUllfl TJ S' ■-^- ^ -'- J Tl X £1 ^ o = s S 5^ 5 c-: ^ - . '^ U t^ — •Bnjoodgoafl m 90UJ : !• : •1^ 3 41 ^ c ^ J o 1. I *"' i in -3-3U'P .'5 ■ '■'r i I 2 1 £ I :■.':.■•• : ■= & 2 M : 2 it • • ■ • ; : : i c - _- ' 5 S • ?r S • • • ~ .' ■ ■ _-6-5^ . . ; "f " ■ ■ ■ i : ■ : .:: n r~ (i !■; ft Ti. .^ ,-- 5 U- H "« X.' •»• '- a Vl X !^ * * * — S,;;^ - 5 - : - - -^"C-BTSt! is^~~ OI-; 16 Mr. FOSTEU. Has my hon. friend (Mr. Fielding) titiisbed his remarks on the loan business ? The MINISTER OF FINANCE. For the present ; tliere is one point furtiier, but I shall be glad to have my hon. friend (Mr. Foster) asli me any question now. Mr. FOSTER. Would my hon. friend (Mr. Fielding) lay the prospectus on the Table ? The MINISTER OF FINANCE. I shall be very ylad to. Mr. FiiSTER. What was the length of the last loan '.' The MINISTER OF FINANCE. Fifty years. There is one other element in con- nection with that loan to which I may make a passing reference. Not only was it de- sirable that we should have our loan placed on a 2J per cent basis, if possible, for the sake of the transaction itself, bit such a change to the 2i per cent rate became of further importance in view of the early maturity of a large amount of our existing loans. MATURING LIABILITIES. By reference to page Ixiv. of the Public Accounts, it will be found that between the years 1903 and 1910, we shall have loans maturing to the amount of £34,443,- 130, or $107,023,202. To assist in meeting the payment of these liabilities, I estimate that we shall have accumulated sinking funds to the value of $60,971,181. So that we shall have to renew or convert the bal- ance of these maturing loans to the amount of over $100,000,000. The net rate of In- terest on our last loan, taking into account all charges, was 2-80 per cent. At the rate of Interest which these loans that are to mature now bear, It would take about : $4,000,000 to pay a year's interest on the ' $100,000,000: but at the rate or 2-8(i per cent, the interest ou the $100.000,(X)0 would amount to $2,860,000, or a difference of $1,140,000. That Is to say, If the money market when i these various loans mature should prove as ' favourable to Canada as it was when we placed our recent loan, there would be a saving of interest to the extent of over ' $1,000,000 per year, as compared with the i rate of Interest which these loans now bear. We may reasonably hope to effect that say- ing, and something more ; for we all anti- cipate, I am sure, that the credit of Caruida, higli as it is now, will continue to improve, and that before the date is reached at wliioh these loans fall in, we shall be able to l)orrow, not simply at the rate of 2-80 per cent, as we did last year, but ni a rate which will come much closer to 2i per cent, which will be the face value ! of the securities. 1 think, then, In view of these large maturing loans, as well as from the nature of the recent transaction itself, hon. gentlemen on both sides of the House will have been pleased to learn that we took the step of placing a 2J per cent loan ou the market ; and I am glad to know that the transaction was not a subject of party dispute, but that its success was re- cognized by the press of the country irre- spective of party. CHEAPER CAPITAL. I shall now address myself to a question which was brought very forcibly to luy mind and to the minds of my coUeugiu's of the Tariff Commission during our in- vestigations of a year ago. Among the many complaints which were made to us by manufacturers and business men as to the disadvantages under which they laboiinnl, one prominent complaint was that the cost of capital was considerably In excess of what many of their rivals and competi- tors had to pay. A very large amount of the business of the country Is carried on by credit, and the cost of money to the merchant and the manufacturer is a very serious consideration. It might be said that this is a matter with which the (gov- ernment has little or nothing to do— that It is a matter which must be left to the general law of demand and supply. But a little examination will show that in some ways the Government have the power of intlueuciug the money market, and thai, in fact, ihe money market has been In- tiuenced to some extent by the policy of the Government. The banks of the country are borrower» as well aa lenders. The banks receive from the public a large amount of capital which they use In the business of the country In the way of loans. This capital is in the form of deposits, and when the banks have to pay an unreasonably higli rate of lnt( —at all e^ not giving busine.ss m said that this respeo has been s in times pa for aiioney, country has be generall, nieut savin long time fair value c may say tl .savings bar ought to ac( savings bai signed to a to the peopli stitution. ] think that t ings bank a! classes could been long sln^ proportion o bank does n positors ait al find that th have been p value of mor savings bank the conelusio of the matter interest of t in the Interest in the interes carry on his : borrowed capi an artificial vi that a man s cording to the and supply. desirable thing the savings ba bered that the was large and depositors was nnce ; but we the Interest of people demandc the savings ban interest than th 17 rnte of Interest on deposits, that Is a reason -at all events, it is an excuse-for their not frlving lower rates of discount to the l)uslnoss men of the country, it has been said that the position of the banks in this respect has been a forced position. It ha.s l>een said that they have been obliged in times past to pay more than a fair value for money, because the Government of the country has been doing so. I suppose it will hv generally admitted that in the Govern- ment .savings banks we have been for a long time paying a little more than the fair value of money ; and some gentlemen may say that we ought to do so In the .^avin^'s banks. But I do not think we ought to accept that position. I think the saving.s banks of the country were de- signed to afford a place of safe deposit to the people interested in that class of In- stitution. By the way. I am inclined to think that the original design of the sav- ings bank as a place dn which the thrifty classes could put their small savings has been long since lost sight of. and a very large proportion of the money In the savings bank does not represent that class of de- positors at all. However that may be we find that the Government in past years nave been paying a little more than the value of money In the way of Interest on savings bank deiwsits ; and we came to the conclusion, after careful consideration of the matter, that it was desirable, In the interest of the business of the country in the interest of successful manufacturing' in the interest of every man who had to carry on his business to some extent with borrowed capital, that we should not have an artificial value of money In Canada, but that a man should be able to borrow ac- cording to the reasonable laws of demand and supply. We believed that it was a desirable thing to encourage to some extent the savings bank deposits, and we remem- bered that the number of those deposits was large and that the advantage to the depositors was a matter of some import- ance ; but we came to the conclusion that the Interest of the greatest number of the people demanded that we should not pay to the savings bank depositors a larger rate of interest than the reasonr' -alue of money. J herefore. In July last we re " m " 26f ** Laces, lace collars iind similar goods, lace nets and nettings ■ of cotton, linen, silk or other material ,30 " ij " 30g " 26J kl 361 Flax, hemp and jute, nianufac- tures of — Dama.sk of linen, including nap- kins, doylies, tiay cloths, side- board covers, damask stair linen and diaiier 26 " 30 " 26J ■' 22J ti n Fruits- Dried currants \ Dried raiains ) Olc. per lb... . •Olc. per lb... . |c. ijer lb. . . So. per lb. Orange.i, lemons and limes, in Ixj.xes- c< cajiacity not exceed- ing i.*! ub. It. . 25c. per box. . 25c. per box. . 2l|c. per box. 18.?c |KT box If I am aslied whether I expect oranges to place whence we shall receive them on more come from England, I reply that I do notj j favourable terms than at the present, but I expect them to come from some other I I do not pu 21 •Statkmkvt 8howiii:4 ilic Old Tarilf Riitf, the New (Jerieral Tfiritf" Ititi-, the Profen-ntial Taritf Hate to tlie .'50tli Juiif, 1898, and thr Pn ferontial Turili Hate from l-l July, 1898, on certain principrtl articles ; ■■a s 1. = u i "" *-i ,^ « ^ /. Artie Old TurilT liutc. I'li'sciit Taiill. :M> |>, c 1.") •' . •JO ;i43 Furnitnri' nf w<«)(l or iiny otlifr i niatt'riiil, limisc, fiiliiiii't nrothci', ( Hiiislicd (ir ill parts 411(1 Kur Hkiiis, wiidlly or partiiiUy ilri'ssi'd 201 (iliiss ;in(l iiianiifiictiiri's of: — Ciiiiinioii :iii'l (•nlii\irlHs> wiiuldw >;l;iss, plain, coliiiiri'il, staim-il or tinted or niiittliil ^jlass in sllfft.M. . . . (113 Hats, c-apsand ImniU'tH, X.E.S.. Iron and sti-i'l, niaiiiifactiucsnf : — I'Sd llardwan-, viz. : I'.iiildiTs', eali- [ inct-rnaki-rs', iipliolstcrfrs'.i lianifHM-ni.akcrs' and sad- I dli'rs", imludinfr curry coMib.M.i I carriage liaid ware, itc 32-4 " .... 227 Ircni in pi^'s •''■J iL* is; jirr ton.. . .•*! S7, iKTton. 27-4 p. e . ... 2,") p. c ... 21ip.c,... l.s, p. c. '>-', " . .. . 30 " 2liJ " .... . .' 224 " 17^ "..... 174 " •■ l-'f'V, " . ■ i:!i ' 17.', " .. 2."i" " 17^ " .... 25' " tr.ft" .. 'JU " .... 131 .' .. l.s/ ■• (! c. p. gall . 5 c. p. g.Vll . i i Ji I do not put anything In the preferential list for that 35 25 1' 1,0 p. c. I I l')!l Flaxseed or linseed, raw or Iniiled 211 p.c 1'iX Taints and colours i Itvy white ai\ 1 red lead, orangei tiiineral and zinc white 5 " . I'apcr and manufactmes of — 1411 Knvelopes. papeteries, lilank l»)oks, and manufactures of paper l..'.l ra]».r, all kind.s, N Iv.S ■ 117 Watch actions or lucnements ... li.'it Wood, maiuitactures of, X.K.S.. Wool, inanufactutes of — i I 31141 Clotha y I I Coatings I- .5c.ii.lh.and25p.c 35 Tw«'di< . j All fabrics, composed wholly or in part of wool, worsted, itc, N.E.S 30 p. c 35 25 10 25 35 p.c ... 2U " l^v " 4^ •• m '• :«)5 211V " 2it ■ .... laf- " : H'ip- 74 p. c. 21i " , 18| " 3os " I 20i I i -Mi "... , 2(li •I % i , ■| J < if ^. k 4 H !i 09 Mr. TAYLOR. That is good protection. few cases In which the rates of the jrenern! The MINISTER OI.^ FINANCE. That tiii'i« are increased, but in every (Mie ..f only shows how thoroughly fair I am put- these rates it will be found that when you tins these items in. I am putting,' a fair apply the preferential tariff you have a Statement before the Ilonse. There are a lower rate than under the old tariff. Statkmkni' .showing the Old Taiitl' l>at.', the Xcw (ieiieial Tariff" Hate, tlie Prcferenti;!,! Taiiir Hate to the ;50th June, 18',IS, and the Preferential Tarifl' Hate tVoin 1st .(iil\. ]8'J8, oil certain })riiici[)al articles : ° i >5 • Ai-tich-. Old Tiritr liiUr. (Ji'iii'nd I'li'.'icnt 'L'aiitf. l'i'<'fi rciitiiil ■I'iuiff to;iOtli .iiiiii'. 18il8. ('lotliirijr, I'caily-iii :i(li', and urarinjx iipparrl iif cvitv i\v- ' sori|iti')ii, inai|ii>sfd wliolly ni I in I'art of wcioi, worsted, N. I (). I'., &(■ .V.p.lli.anciaop.c :«•: Carprts, limss..]. \ .j,^ tapi'stry J ' 26 I^'arliiic and citliiT soap poucl'Ts ;!."> " ... 47 t'orinncal Hk'. ji. liil '_'.">(•. p. lilt :■)."> Wlii'at l")c. |J. bush. . . . 12c. (i. liiisli, 5() " Honi- 7.1c. p. lirl . . . iHlc. p. brl . , 1.-I2 Sni'i^ical belts and uusscs, and snspciisnrv baiidap'si if all kinds L'."i ji. c 20 p.c, 1."),'5 Siiiyical .and dental instrninints (nut licin^' furniture) and sur^d- ■ cal needles. l.". p. c . . . . , 10 p.c. 171 LnliiMeatinjr nils, ciiniposed uhnlly or in part iif peti-ipleinii. enslinj; j less than twenty-five cents per (.'allciii bill .Scliiiiil writing slates 245 Stiive plates, stoves ot all kinds, sad or sinuotliiiii;, hatters' and tailors' irons, itc 27j "... 24.S Cast iron |iipe of e\erydeseripti(iii .silo jier ton but not less thilldl.") (ic. per gall..' ."le. per trail.. ;i(l p. c 2") p. c I'refi.reiitial Tariir from 1st .biK-. b'<'.>s. .;, 2(!1 p. 2(1 1 ■■ I7.\p. c. . b'> p. re from 1st .lanuarv. Is'.is 2.''i5 Iron or steel cut uaiU and -pikes ( I ird i ua ry I uiildcrs' ) : and railrf lad spdvCS 2.'-.7 Wire nails of all kinds, N.O.I'. . . 2S,s p'ile- and rasps N.K..S 2S1I Adzes. eU'avers, hatchets i Saws llaiiuneis. eant it, ; that you ha you were gol it, therefore ni'e." That 1 of my hon. fi what was tl on this quest ed correctly say we know were going t there wer(> in ili.'it we wen fair-minded i 23 I am afraid that I have wearied the House by reading that long list, but I think it was necessary, In view of the criticisms that have been offered, to show that we have iii;i(li', if not all the reforms that we de- sired, a very extended tariff reform and one which I am sure the country will appreciate. The POSTMASTER GENERAL. lias ap- preciated. The MINISTER OP FINANCE. Has ap- preciated, my hou. friend says, and I accept the aiiK'uduienr. correct description of what occurred in this House. CANADA A.NIJ TIIIC TREATIES. THE l^UEt^ERENTIAL TAUIb^F. Tito most striking feature of thj tarifl' I)olicy of last .session was the nreferenii.il tarilf. Tliat policy was di'si.miod chielly to bring about preferential trade with the mother country, and I am sure the House will a^re,' witli ipo wlicii I say tiiat that portion of our tariff policy has been success- ful beyond measure, and has given Canada a world-wide fame. When I say this I do not forget that my hon. friend the leader of the Opposition, not many days ago, stated that that policy had been a complete failure. I do not know whether my hou. friend wished us to take that remark seriously. But If we are to treat It seriously for a mo- ment, let U3 consider what grounds he has for that statement. lu order that he might give himself some appnrent ground, my hou. friend had to create a policy iu iiis own imagination in order that ho might have one much easier to attack. He says, addressing the members on this side of the House : "You told tlie House that you were going to esta- blish Lirefercutial trade with the uiotlier i oun- try, you said you could do it, you said yon would di> it, you said you Know all al)out it, tliat you liad not any doubt about it and you were going to do It ; but yon did not do it, therefore your policy is a complete fail- ure." 'I'liat ill suhslance was tlie siateiuent of my hon. friend not many days ago. Now, what was the attitude of the Oovernment on this question last year ? Was it descrlb- eii correctly by my lion, friend ? Did we say we knew all about this matter, that we were going to give preferential trade, that there were no doubts uud no dilliruUics, .nnd ilial we W('r(> sure to do it V No, Sir, every fair-mluded man knows that that l^ not a Wliat we dill say was this : That wliile wo knew well il.ai tlif IJelgi.iii and German treaties had for years been regard- ed as standing in the way of any such ar- rangement, we felt that the Issue respecting these treaties had never been fairly and properly tried out before tiie J^ritish Govern- ment ; wo felt that the mom -nt had arrived when we should challenge the position that was taken on that question, to see if something could not lie done to bring about a change for the better. I have stated that we knew tliat tlie lielgiau and German treaties appeared to stand in tlie way, but we felt the time had come when wo could present the question before Her Majesty's Government in a new form. In tlie first place, tliero was room for argu- ment, and we did argue, that inasmuch as the Belgian and German treaties had i:->er been ratified by the rarliaiuent of Canada, or liy tlie legislatures of tlie provluee of Can- ada, (u- by any particular legislation any- where, there was fair ground for contend- ing tliat those treaties could not be made to apply to a self-governing colony like Cfin- ada. We had to tiiko the position, in Can- ada's interest and as tlie advocates of Cau- ;ula. that it was our duty to put forward every argument we could put forward lu favour of ;iud in support of our claim. Wo had presented the question to the House In a form not confined to itreferential trade with the mother country alone. We pre- sented our proposition to I'arliament in the form of an olfer to extend preferenti.al trade to such countries as might be willing to e.xlend equal advantages to us. 'I'liere was a reciprocal condition in tiie treaty which opened a new question, new at all events as regards Canada iind the mother country. There liad been no previous proposal on such lines-, and therefore we felt there was room lor argument, and we were bound to argue, that new condilioiis ilial existed enabled us to question whetlicr those treaties would have the effect which hou. gentlemen oppo- site In th's House .said they had. We went on to contend, arid we did contend, that even, if Belgium and (Jermany were standing In •he .-/av, as they had been standing in th« i'll i 24 IM I ' - f way iu tlio past, the new conditions that were imported into the i]uestion since the offer was made to other countries, even to Belgium and Germany, if they were prepared to avail themselves of the offer, placed Can- ada iu a position wiiieh Her Majesty's Gov- ernment should consider. "We were well aware that thesi^ were debatable subjects, that some of them in times past had been the subject of (lilUculties ; we linow there were doubts and ditticulties surrouudin^ them ; aud we farther Icnew that Her Majesty's Government, in dealing with foreign nations, would always be disposed to interpret treaties in a very liberal spirit to the contracting parties ; but laiowing all these facts, wo nevertheless felt that we were bound as the advocates of Canada to put forward every claim which could be put forward in its behalf. That was tiie posi- tion the Government toolc. and tliat was the position which my lion, friend the Min- ister of Marine and Fisheries took in this House, and which he toolc outside of this House, and as an advocate of Canada he was bound to put forward every claim he could in order to sustain Canadian interests. In order to show that this was the posi- tion we took, that we knew there were doubts, that we did not take the posltioL which hoii. genllomen opposite say we took, I am going to ask the House to bear with me while I read a quotation from my Bud- get Speech of last year, aud 1 read it because 1 desire to show that from tlie be- ginning tlie position we toolv was this, not that there were no doubts, not that the course was clear, but that doubts aud ditti- culties prevailed, aud that we were resolved to go forward with the Arm conviction that even though the views we hehl could not be sustained by Her Majesty's Government, the outcome of the whole matter would be to present the Belgian aud Gorman treaties In a new ligl't and one which was likely tu bring about good results. Speaking at llu! time wlien I was asking tiie adoption of this new policy, I used the following language :— Now, I shall not undertake to pass any judg- ment upon tills very Important question of the most favoureJ-uatlon clauses o£ tlieso Imperial treaties. It Is an Interualloual question, and It 1b well that we should reserve our llnal Judg- ment 'ip.m rr.s^nW.r, t!i.".t It Is tlon upon which we shall ultimately have to consult with Her Majesty's Government, and I need not say that any view that may be taken by Her Majesty's Government will be considered by the Government of Canada with the respect that Is due to any representation that might be made upon any subject, but above all, on th» question of an International character. I say that It does not seem fair and reasonable that we should be obliged, while we are offering cer- tain terms not to Great Britain only, but to all countries which will place themselves In ih? same position— it does not seem to be fair am," reasonable that we should be obliged to extend the privileges of this schedule, which we call a reciprocal tariff, to nations which are not will- ing to do anything in return. I admit there may be difficulties in the way. It may be possible that the view we take of thi* matter is not the correct view, but we say it is only fair and reasonable in the interests of Can- ada, in the interests of fair trade between our- selves and Great Britain, that we should to-day take the position that the favoured-nation clauses do not apply ; I regret that I have mislaid for the mo- ment the page on which I i:ve extended the balance of the sentence. Mr. DAVIN. tt i; aj- follows :— —aud that this resolution, which I put upon the Table of the House, will only extend to such countries as are prepared to give admission to our products under fair terms. The MINISTER OP FINANCE. Ferliap-S the hon. gentleman will proceed with the reading, because it is very good sense. Mr. DAVIN. Sir Charles Tupper then said Some hoQ. MEMBERS. Oh, oh. The MINISTER OP FINANCE. At th:it stage of the discussion the leader of the Op- position exchanged a few words with me in which he took the ground that the treaty in express terms stood in our way. I cou- ' tinuo the quotation : ' Tho MINISTER OF FINANCE. Even It It i does, the world moves, and possibly the step we are taking to-night n'.ay have the effect— and I hat may bo one of the advantages of it— of drawing the attention of Hor Majesty's Govern- ment and of tho English public to the position of those treaties, and thus opening up the ciues- I tlon. Meantime, Sir, recognizing the dilllcul- . ties, recognizing the possibilities that our judg- ment may bo mistaken, and recognizing the nbll- gations we may owe as part of the Empire, we Intend for the present to take the view that Inasmuch as we offer these conditions to other I nations. If they do not see lit to accept them, '. the responsibility rests upon them and not upon Canada. ' From these passages, Mr, Speaker, it will be seen that from the beginning we rei'og- nlzed the debatable cliarader of tlie snli- ject. and tho doubts and diltlcultles whicii were before us ; and we went forward, not with the assurance that the views wlilfh we had advanced would In all respects pre- vail, but that the treaties sh place the ques a manner as tlie objectionii aud German t True, Sir, tht .said from the ground whate tliat no good But better a that the groui SiMve eonside I'.ritish opinioi Imperial and < " Times." empl doubtful whetl such a case as ('anada. Tier A il(>emed th(> po mcnt so imporl judgment until .nrgued before t Our views ^^ jesty's Ministe and to the Briti tlie Prime Mini; line and Pishi fir;,'ument by Ht was the result lii'lil that unde ili'rii.auy and I icive in the Bri conditions as w t:iin. DENUNCIAT Weil, Sir, if t If that were tin my hon. friends tion to tell us tl PDod fruit. But KT (lid not end 1 lions W(>r(' going I'eiiig heard bef( Cfown in Engla Canada under th opinion was bel Kingdom and thi iH'canip a potent tlon. For the Ilr l^uid were made liicsf treaties mt "harrier between colonies. Public 25 vail but that even if our interpretation of \ been talking of preferential trade for years the treaties should not be upheld, we should j but they had never got bevond the stage of place the question before the public in such j talking. If we had followed on the same a manner as would show most effectually the objectionable character of the Belgian and German treaties. True, Sir, the hon. leader of the Opposition said from the beginning that there was no ground whatever for our contention, and tliat no good could con;e from our action. But better autliorities than he admitted that the grouniLs we had tal Kiiglaud could 11 It oomply. All the advocates of prefoi'eu- tial tiade. .it all events all who have taken an active part lu that movement, have assumed that ! a.s ttie tirst f^lep, England must consent to put a | duty on grain. We know that England does not view that pi-ojeet with favour. Wo know that no more uiipnpular project can ho off;-red the Eng- lisli pe.ple than to ask tliem to put a duty o'l breadstulfK. Ir u:ay be, as time rolls on, and at au early day, they may change their views. It may i'O that they may see it in their interest to make this listinciion. and they may offer some i preferential terms to the grain of Canada. If they can bo inducMl to do that by fair argument, I , have no iloubt \t. will bn a good thing for Canada. Itut wliv shoull W'.> wait for England to take action ? England lias d'een a success. But when we were able to show, as a direct and immediate result of the step which Canada had taken, that the denunciation of those treaties, which liad been sought by the colonies for so long a time without success, was brought about, iheu I say the Government of Canada had a splendid vindlcitiou of tlie p(dicy ihey had pursued on that (luestlon. We all know. Sir, with what joy the view taken by the (Jovernment of Canada was received by the English people. We know that while the Government of Canada was backed up, and promiitly backed up, by the action of the sist(>r colonic.;, it was backed up still more strongly by British public opi!>iini ; and but for that public opinion, which I claim was the direct outcome of the Cana- dian policy itself, those Belgian and German treaties would not have been denounced down to the present moment. F.VVOUHEIJ-XATIU.N' TREATIES. I have spoken of the effect of the Bel- gian and German treaties on our move- nient for preferential trade ; and now 1 must say something ivitli regard to another class of treaties, these commonly called favoiu'cd-uation treaties. Great Britain has treaties wi'li many nations, containing what is caileil tlie favoured-nation clause, by the terms of whicli it is declared that if at any time Great Britain should grant to any third power any commercial advantages, she sliall be obliged to grant those advantages like- wise to tlie contracting power. When, there- fore, by the action of Her Majesty's Gov- ernment, It was determined that the Belgian and Gorman treaties must apply to Can- ada, and that we must admit Belgian and German goods on terms as favourable as the goods of England, then it followed that by the terms of the favoured-nation treaties, we were obliged to concede like advan- tage's to every one of the nations wliich had a treaty of that kind with the mother cnuntry. I have here a statement show- ing tlie several countries which have been brouglit under the oiieration of the Canadian preferential tariff : Countries aibulttcd by tlie reciprocal char- acter of their tariff : Xow South Wales, nrltish liiilla. Xfliierlai'iils, Japan. i'iuMtvl'>s '-.(liiiilted I'.inlcr the Delglan and CiiTiiian treaty : MelKiiiin aiiM fit'niiany. Coiintriea aihiiltted iiiuler fti" favoured-nation ti'putles : France, Algeria, ami llu> French Col- onies : Ari!;entln.'i, Austria. Ilum^ary, Ilollvla, Colunibla. ncniiark. Persia, Russia, Sweden and Xorway, Tunis. Veneziu'la, Switzerland, Liberia, Moropco. Salvadia', South African Republic, Tor.Ra, Spain. The case of France. Algeria and the French colonies was governed by our own Franco- Canaili.'iii Treaty, whiidi liad. of course, received the approval of the Canadian Parlla- lii if '.' SJ; i; : 1 i i Hi l i rr.ont. lu the other cases, the favoured-nation treaties had never received the approval of the Canadian Parliament ; but they were nevertlu'less held to apply to Canada. Thus it will !)« seen that the preference which we wished to give and which we actually did give for several months to Great Bri- tain, had to be extended to the countries 1 have named ; and we refunded to Im- porters duties wliich had been coUeeted in the iuierim upon goods from those several countries. But all this will come to an end at a very early day. At the end of .Tuly in the present year tlie Belgian and German tre.ities will expire. Canada will not then be obliged to give the preference to either Belgium or Germany. PREFERENTIAL TR.VDE— AMENDMENT OF THE ACT. With the fall of Ihe treaties, the claims of otlier nations, under tlie favoured-nation treaties, to receive e(iual advantages will also fall. Canada will then be free to con- fine the benefits of her preferential tariff to the mother country and to such colonies as, in tlie judgment of Canada, sliould be ad- mitted. That Ks, Mr. Spealier, what we can do, and that is precisely what I shall have tlie honour of proposing to the House. Under the terms of the preferential tariff. ■'IS it now stands, the second reduction of 12i per cent, making '2r> per cent in all, will talve effect on the first of , Tuly next. For ilie moment, it will be necessary for us to give that greater reduction, not only to Great Britain, but to the various nations I have mentioned, because the treaties do not ex- pire until the last day of July. We propose to repeal the section of the law and the schedule dealing with the prefer- ential tariff. We propose that that repeal shall take effect on the first of August next, which will be the day when Canada will uo longer be bound by the Belgian and German treaties, and we propose to substi- tute for the existing law on the subject a new section and schedule, In accordance with the statement I have made. This new section and tliis new schedule will provide that the iirefereiilial tariff sliall. In the first place, apply to the products of the United Kingdom of Great Britain and Irelan^l, and also thp' it shall apply to the p.oducts of ' any British colony or possession the tariff of which is deemed to be favourable to the trade of Canada. Under this provision,, New South Wales and British India will be ad- mitted, as they now are, to the benefits of the preferential tariff. There will be a fur- ther provision respecl'ug Ihe operation ot the preferential tariff, to which 1 shall refer as I proceed. Mr. McNeill. WlIl the hon. gentleman kindly say, how the denunciation of tlie Bel- gian and German treaties affect the favour- ed-natioi clause with regard to other coun- 1 tries ? The MINISTER OF FINANCE. By the I favoured-nation clause wo are obliged, as j part of the Empire, to give to any country having a favoured-nation featy with Great Britain any privilege which may be graiilcil to any third power. Belgium aiul Geriiiany I are third powers within the meaning of Iliese works. Therefore, when we we''e obliged, by the decision of the Imperial aiithoritii's, to give the privileges of the tariff to Bel-iiiin ami Germany, th(!se being third powtM 'is respects all other nations, the favourtnl- natlon treatic^s began to apply, and we lunl to extend the advantages to the several countries as well. Mr. McNEILL. I think I did not malie my (itiestiou quite clear to my hon. frii'iul. I was not asking wiih regard to Belgium and Germany, but with regard to other eoiiii- tries. For cxamiile, Holland nad a riglit to come in under the favoiired-natlon clause ; would not all other nations having that clause In their treaties, have the right to come In as soon as Holland was admitted, Irrespective of Belgium and Germany alto- gether ? The MINISTER OF FINANCE. I see the hon. gentleman's point now. The point Is, that having arimitted Holl.and, we wotilil he obliged, even irrespective of the Gei-inan and Belgian treaties, to admit the oilier nations as well. That would be quite cor- rect, but we could easily have refused to admit the goods of Holland, and then tliere would be no trouble. But we couhl not refuse to admit the goods of Belgium and Germany with the anme freedom as we could the goods of Holland. Mr. McNEILL. Does the hon. geutleinnn say that he could. In the face of his reclpro- •29 cal offer of^last session, have refused admis- sion to the goods of Holland ? The MINISTER OP' FINANCE. That, possibly, is a question upon which legal gen- tlemen might differ. I am strongly inclined to think that there was a measure of discre- tion remaining in the hands of the Govern- ment on that question. I will not say, how- ever, that the question Is beyond debate. I think, perhaps, there Is room to doubt whe- ther or not we were obliged to admit thd goods of Holland. However that may be, Holland received the bejeflt of the doubt, and we did admit her goods. The hon. gen- tleman is quite right in stating that the moment any foreign nation, no matter by what method, received the benefits of our preferential clause, we were then obliged, under the Imperial decision, to give every other nation having the favoured-nation clause in its treaty the same advantages. TARIFF CHANGES. I wish now to say something with regard to changes which may be deemed necessary in the present tariff. The Government have been gratified, and exceedingly gratified, by the manner In which the tariff policy of last year has been received by the country. We believe that that policy has given unbound- ed satisfaction. We did not make the mis- take, and we do not make the mistake now, of supposing that the tariff is perfect. There are duties in it which are higher than some of us would like them to be. There are duties which we hope will not remain for ever or for a vi' long time. There has been, however, a very general recognition among the friends of the Government of the fact that, in a matter of this kind. It is ne- cessary that we should proceed in the spirit of compromise. It was realized that, in a large question, affecting such a wide area of country, with so many conflicting inter- ests, we could only hope to work out the details of the tariff by giving and taking, as respects the different sections of the coun- try. It was recognized by the people that we ought to avoid, as we did, such radical changes as might be calculated to seriously disturb the business of the country. All these considerations. Into which the Gov- ernment were bound to enter, and which InUuenced the policy of the Government to a considerable e.Ktent, have been recognized by the public at large. I believe the people are rea.sonable In that respect, and will not ask us to make at once that which would be a radical change, and that which might have a disturbing influence on business. I think it will be admitted that frequent tariff clianges are not desirable. Some- thing in the nature of tariff stability is much to be desired. It Is better, even, that we should bear with some inequalities that may exist, than suffer the greater evils which would arise from fre(iupnt tariff changes. We have had representations made by a number of interests which, they think, ought to receive more cousidoratiou. Some of these presented cases which have, to some extent, commended them to our judgment, and if wo were opening uj) the general revision of the tariff, or a revision to any considerable extent, we would be able to lend a ■willing ear to some of the re- presentations that have been made to us. But we think. Sir, on the whole, believing as we do that the changes In the tariff should not be numerous or frequent, believ- ing that we should have a large measure of tariff stability, believing that the public understand the policy of the Government in this respect and will be content to have us carry it out In that spirit of moderation and caution that we have so far evinced, we wish to announce to the House that it is not our Intention to make any numerous changes in the tariff at the present session. In fact, I may state that, so far as the rates of duty are concerned we have only one change to announce. There are .some other changes which are more matters of form than of substance. The preferential tariff will have to be amended in the direction I have already Indicated. We think It Is expedient to make a change that is purely technical in the section of the law relating to prohibited goods. As respects the duty on raw leaf tobacco, which we Imposed a year ago, we propose that, after the 1st July next, it shall be collected through the De- partment of Excise instead of through the Department of Customs. It has been ar- ranged that In the Excise Department the duty shall be collected on a basis on what is called in the Inland Revenue Department the standard weight. Under the existing law, tobacco is dutiable on the weight when -I \ H li: m :\0 't i : it passes throuuli the customs. Arrangements have been made by some of the hirge manii- laeturer.s to dry tobacco before it passes out of the warehouse, so that they do r,ot pay on the moist weight. Otlier manufac- turers, not being so well able to do that, ju-e obliged to pay on the moist weight. It seems only fair and equitable that we should treat all alilie. and when it is to be dealt with by the Excise Department, that the regulations of that department should be adopted iu the matter. With regard to the duties on tobacco, which were increased last jear to a considerable extent, I am free to ^iay that I have doubts that this is as wise ji measure as we lioped it would prove. I may say frankly tiuit 1 am .afraid it has leil" to an increase of smuggling to a very considerable extent, and we may well cou- sider, at a future day. whether or not we can successfully enforce so high a scale of duty. However, the law in that respect has been iu force for a very short time, and we thinlv it only reasonable to give it a fairer trial before we condemn it. «o we do not propose to make any change with regard to tobacco except as 1 have just an- nounced. TARIFF STABILITY. But, Sir, while it is a good thing to avoid what is called tariff tinkermg, there is just a possibility that in condemuinn that practice we may go too far. I find that tariff tinkering is an expression which means different things in the minds of differ- ent men. A man who is (luite satislied with the tariff thinks that aiiy interl'erence with it i.s tinkering, whereas a man who is not satisfied thinks that some change such 's he desires would be high statesmanship. We wish to guard against freiiuent clianges in the tariff, against tariff tinkering, but let us be careful how we convey the im- pression to the public, because we do not mean it. that we regard the tariff as final. Let it not be supposed that the tariff is settled for ten years or even for five years. So long as there are high luties, there must be demands for tariff changes. Nothing is settled until It is settled in accordance with right, and so long as there are high duties, we may expect agitation for redttcliou. I am afraid there is no I'est for the protected manufacturer. I am Inclined .0 think. Sir, that he will find eternal vigilance to be thu price of his protection. He must be on guard all the time against tli(> attack tluu he knows must always come. So long as there are high duties, there will also be consumers to protest against them, and I think that tin- manufacturers will show the best understanding of their own pusi tlon, and best coiistdt the i)ermanent inter- ests of mimufacturiug enterprises, if they will realize that very important fact. Ii is well, if they are to-day in a position whirli aft'ords then some comfort and advain.iL,'.'. that tliey should apply their time anil use their opportunity to get their business upi.i) such a basis tliat it will be as little as pos sible dependent upon tariff aid. '"lie ten- dency of ;i high tariff' policy is to lead iiicii : to look too much to tariff and too little 10 tlie efforts they should make for the beiielit of their business. What a world of good might luive been accomplished for the tnio interests of mnuufacturing iu the Dominion of Canada, if all the time, and all the (iuergy, [ and all tlni labour, and all the money that have been exp(!ndcd iu the last twenty yenr< iu tariff watching and tariff wire-pulling ; at Ottawa, had been expended iu the fac torles, in the developmeut of business, in new invention and discovery, iu produciug labour-saving machinery, In learning \vli:ii might be done with waste products, in deal- ing with all those forms of industrial 1 in- gress which have to be dealt with by the manufacturer when he has keen competitinn. We would, therefore, say to the matiufac- turer that if he desires permanency in tlie tariff, be must never expect perinaucicy lai- til the tariff gets down to a moderate point ; and to-day there are duties In the tariff so high that I am sure the Government are not prepared to treat them as part of a pcim.iu- ent tariff. 1 say this. Sir, in no spirit but tliat of friendliness to the manufacturing inter- ests. While the manufacturers are in a faiily good position to-day, it would bo a mistake for them to fail to realize the fact that ('.111- fida has ttirnetni,, ,ho R.sht Hon. Mr. Chamberlain, tent. It is allesed that , he depression i. il,e made s,>„,o reference to noff,.tiati.ns that , result .,f a tulure .,„ ,h, pait of , he W 'it were taking place between the I>onuni,.n of , India planters to live uu to the times nml ranada. Ignited States and the West Indies ; to i.np.ove their n.etlZs V "r w !: ad ^y■ 1> n^u^')rd to reo.procal trade. These nego- ; their methods of treating sn.^ar I ^Ive tint t,ations.sofarasCa.,ada is concerned, have I as one reason which is son.etime; a le"^.'^' not p.„e very far. and we have not mnen ; against them, not that I endorse the o 1 i^n e conummieate to the Honse concerning : There Is no doubt wluatever tl t .n.tr; them. B„t we are of opinion that, without ; condition has operated verv la ''hv ag ins w 1 n,g for the con.pletion of these negoti- them, and that is the deu-io m„ u of « Z ^TmT^ Z ''" •"^^•^'^'P"-"^ I ^-^ -«- i»^l-try. particularU. i,! t,.: o s (II ail tiiat is lilvely to arise in connection | of ilw ciniincntil unions «i, ,. . tliat something of this kind should be at- tempted in the interest of Canadian trade by the bounty system of Europe, noinbly of the various continental nations. Just iiow .•ecause there are large opportunities of r.i- n, .^ • ".->-..|o„u,e„t i„ ,h„t qm,-u.,- Tu™. ,,0 V^VJ '" 'T " '""""" » '"""■'■ ""»" relations. When we remember that of the 330,0<)n.oOO pounds of sugar consumed in the Dominion of Canada, only 2o„5()0.000 pounds come from the British West Indies, finances are In a bad position, the business of the Islands is in a bad position, the con- dition of the AVest Indies is at this moment a very serious subject to the people of the our natural customers, and that the re ' , ■• ^"^•"''^* ^° ^^*^ I^^^°l"« "« ^he mainder comes from other countries, largelv '■ imTTi i^"'^ "'' ^^""^ ^™^^ P™^''*^"' f°^' *''« from continental nations which supplv uk ,Z 'f ?°'T°T°',*'°'' "''^ '"'P"'"''^' ^••^^- ^vith beet sug.ar and take little or nothing ! f.^fi ,..,f^. "' ''"' ''''''''' ''''''' from us, I think the House will agree with' '' " ''""' '"""f'^" '■^^^ •'' '•">•«' me that we ought to desire an extension I, ^ T"""",", T" ''''"'"''''' ''' '^'' ^'^i'^'y ■iir trade with the West Indies and to con- ' !v "l*^, v , eondition of the British suine to a larger extent the products of that i *^ "^ ^•°"'^-''- ^^1^"^ commission was •ountry. If we were to ,nl aside all oti:, '^:^::Z "sir^n'f rf "', '''''''' ''''"'''''• oonsiderat'ons, the advantages of trade Avith i'; n *"',/»'»'"' Barbour and Sir Ed- that CO y appeal so stroT.glv to us tint ' TJ . '': ''" gentlemen made a very nin sui. the House would desi're us to make w ?r ,f '°'^""'^ '°*'' "'" condition of the .une special effort to cxten,! our business ! '^^ ^ff. T'' "'"'' ''"'''''' conclusions. ill that quarter. t ^°™® °^ ^''"^l' ^^'p™ "uanimous, and some Rut there Is another consideration which agrref'lnrTh" t'an .°/, ''^''•i"'- '' "'" w(> may well take Into our minds TheWes Wo« m financial position of the M> l« a ,abj«l „t ooMeDtlon. ,o some e^. *,tle,, .b„, is ,„ s,," tuLlZZtlT^l ¥f. \i y .i if i tm. h' tlnentiil nation granted a bounty upon Its beet sugar, there should be a counter- vailing duty upon that sugar If import ed into Great Britain. That subject has I n very nuu-h discussed In Grr 't Britain. I do not think the advocates of countervail- ing duties there are very numerous, but they are certainly very intelligent, able and Influential, and an Impression existed in the minds of many people that Her Majesty's Government would yield to the recoinnien- datlon of Sir Henry Norman and establish countervailing duties. However, any doubt that might have existed on that score has been removed of late by a speech delivered at Liverpool by the Colonial Secretary, Mr. Chamberlain. In that speech he Indicated that the British Government were not pre- pared to accept the remedy of countervail- ing duties, but that they would seek in other ways to assist the position of the West Indies. I have already stated that measures are before the Imperial Parliament no'^ to give aid in the shape of grants and huV' for public works. It Is also the desire of Her Majesty's Government to assist the West Indies In other ways. Efforts are be- ing made to induce the West India people in some of the Islands to give up the grow- ing of sugar, and devote their attention to other products which It is thought the is- lands will successfully produce and no doubt something will be done in that direc- tion. While the production of sugar has been steadily falling off, the production of other articles, chiefly fruits, has been very largely extended. Still, sugar Is and must be the chief product of the West Indies for the present and for a long time to come ; and unless there can be a profitable iinr- kot fur the sugar of the West Indies, I ;iin afraid there is not very muefi hope of the relief which the West Indies de- sire being obtained. Knowing as we do that Her Majesty's Government arc folkw- ing this question very closely, knowing that they are dealing with a serious problem in the face of many diftlcultlos, it has occurred to us that as the West Indies are our nr.- tural market, as they are British colonies, though far away in one respect, colonies with which \>-e have close relations, that we have some imperial responsibilities in this matter— i'- hns occurred to us that we should be willing iTi a small way to lend a lielping band to those colonies In the sunny south. If we adhere too rigidly to the underlying feature of our prefereutial tana, I am afraid we shall have to admit that the terms of the tariffs of the West Indies are not favourable to us, and perhaps we could not by a mere reciprocal clause extend the preferential tariff to the West Indies. WEST INDIA TARIFFS. We have examined the tariff of the West Indies, and we find that while they are high tariffs to a considerable extent, they are la no sense protective tariffs. The duties im- posed are largely on food products, and tliese, as we can well understand, are the very things that Canada might hope to sell. I have here a statement which I shnll sum- marize, if my hon. friends will permit nie to do so, showing the operation of these West India tariffs on some of the chief products of Canada : 3 2 ^ 'J a _ li w so t; * 3 SI im m n :;t p Ml: ! 1 PKEFERENTIAL TAHirr EXTENDED TO TIIR WEST INDIES. I think It cannot be contended that In any case these aro protective duties. They are not designed to exclude the products of Can- ada or indeed to exclude the products of any country, hut those people find that the necessities of their revenue oblige them to tax food products very heavily. Therefore, as I said a moment ago. were we to apply too rigidly Uu' principle of our prcfcrcnti.il tariff to those colonies, I Mm inclined to think we could not properly admit them to the benefit of tliat tariff. Nevertheless, la view of the condition of iffairs winch exists there to-day. in view of our own desire to extend our trade relations with the West Indies, in view of the dlttlcul- ties which are presented in the treatment of the question by Her Majesty's Govern- ment, and with a desirt to assist in some small and modest way In working out these great and difficult problems, we propose that without waiting lor anything further, without demanding concessions from our West India friends which their needs might not allow them to grant, without insisting upon a rigid compliance with the conditions, we propose, after the first day of August, when the treaties expire, and when we can give full play to our policy of ))referentlal trade, to extend that policy to all the British colonies in the West Indies. The principal imports to be expected from the West Indies will of course be sugar, but we may expect other things, and notably fruits. On the other hand, we should be able largely to increase our sales of Canadian products to those islands. The maritime pio- vinces have long carried op a traile wiili those Islands, chiefly in fis-n and lumber, though other products have been sold as well. If we increase our purchases of West India sugars, as we hope to do, there is no reason to doubt that our exports in these lines will be increased. But, Sir, we do not think this trade should be confined to the aiaritinie provinces ; there does not seem to be any reason why the products of the pro- vince of Ontario and the great west should not find a large market in the West Indies. If we look Into the statistics of the islands we will and that the West Indies are large consumers of food products such as we raise in Canada, but we find that the bulk of tho.^e pi'oducts are I'eing received from the United States. My hon. friend the Minister of Trade and Commerce .«ays. through the United States. There is some- tl-ing in that point; but I think the grea' iMilk of the food products for the Wt« Iinlies are the products of the United States as well as having been shipped from tin' Unlti'd States. There does not seem v> !)(> any good reason why the flour, cheese, tacon, ham. lard, butter, and the varion-; articles which the farmers of Ontario Mnd the west produce could not have as fair a cliaiice of sale in the markets of the West Indies as similar products from the United States. There has been a difficulty in tho past, I think, thrcugh lack of attention to these markets. Sometimes a merchant, with an unsaleable stock, Uiinks it a very sinipif- thing to (lump it on the West Indies mar- ket, and then ho complains that he has not made any money on it. You cannot do business in the West Indies or anywh<'re else in th.at w.ay. Our producers must realize that in order to sell their goo.ls in the West Indies they must ascertain the conditions of the market and ad' pt themselves to these conditions. But surely there is no reason why the farmers and merchants of Canada cannot adapt tlicm- selves to those markets .lust as well as the farmer? and merchants of the United St.ates. Wfc l>elieve if care be taken to investigate the market, if care be taken in collecting the right articles as to quality, in sending them out at the proper time and in the manner of packing them, taldng care that the quality is what the West Indian market wants and the style of pack- age is what is required, there is a fair chance of very considerable extension of Canadian trade in that quarter. For some years we have had two steamship lines running to the West Indies ; one from Hali- fax to .Jamaica, and the other from St. Jolm and Halifax to Georgetown, Demenira, which is on the mainland of South America. But the line from Halifax and St. .Tohn down to Demerara is by a route involving so many ports of call that by the time the destination is reached the voyage is a very long one, and the importers at the dis- tant points claim Ihey have not the same opportunity to trade with Canada as with the United States. It is very desirable, if it can be accomplished, and though we have 35 !>■. proposal to make on the aiibject to- day wi; hope sooiethlUf; of the kiuil will lie broii,:;ht about, that a ([uick aiul direcl line from Cauada, uot calliii;,' at all these way ports, but cuUIuk at Barbados, Trial- dad and British Guiana, may be esiabllghod. If attention be given to this trade in the way .su;;;iested, we iiave !i strou;; hopi'. from in(juiries made, that a very consider- able trade will be built up in that direction. Whetlier We are sueeessful in doiUR so or noi, one liiinK is certain, r.jimely. that the present condition of the West Indies and the (Janadlati West India trade u mands tiiat some effort shoidd lie iiiadf or these lines, and we thiuii tiie best v. e can do fur tile i)eople of the ^\■^'St Indies is to say : ^\'e will jj've you the benelit of our preferential tariff, wiiiioui barjiaiu or anytliiuii else, and we do not expect you to make very great concessions to us ; but if any means oau be deviseil whereby obstacles to Canadian trade can be removed in that (luarfer, wr iiave no doxibt tiiat you, our brother colonists, will meet us in the same spirit as we desire to meet you. CHANGE IN THE SUGAR DUTIES. There is another direction in which we think we can do a little to help the people of the West Indies. The present method of levying the sugar duties in Canada oper- ates unfavourably to the sugar trade with the West Indies. The duty is a Hat specific coiiies a food after it is refined, and therefore we have no particular desire to leg- islate ag.iiust it. Inasmueii as there is a con- siderable (|uantity of low grade sugar, not so low as 75 degrees, but of moderately low grade-s. on the market, it Is not the business of Canada to turn away the trade whicn this sugar offers. While our tariff i.'^ operating in that way, tlie tariff of tiie United States is graduatei', so as to encour.ige the trade in these low grade sugars. They lave adopted the jiolariscopic test, and tlie effect is to estabiisii a graduated scab' of duties whereby low grades pay in projiortion to their value. The polariscopic system is practically under another name an ad v;il- crem duty ; low grade sugar pays its pro- portiim and hi,gh grade pays aceonliug te its value. AVe therefore propose to return to the polariscopic system used in Canada so suc- cessfully a few years ago. We propose to begin at the limit of 75 degrees by polari- scopic test and charge for that degree or anything l>€low It a duty of 40c. per 100 lbs., and we add lie- for each additional degrt^. The average test of raw sugar used in Canada to-day Is, so far as we can ob- tain information, 92 degrees by the polari- scope. That information come from the refiners, who possess the best knowledge ; one gave 91i and the other 92 degrees. As- suming that to be the correct average, and applying our new scale of duties to the pre- sent eonsuniptiou of sugar in Canada, we !»; ^11 Ii Hi 11 H « '1*, 36 fi I II i I I I ?! f find that on ',»2-(k'gi'ee susai' the duty will he G5ic. per 100 lbs., as against aOe. piT 100 lbs. uuder the present tariff. In the early part of my remarlcs. I statetl that iu conso(iniMife of the reduction we are oblifrcd to iiiaUr in duties on Briiish imports after 1st .Inly, and to maintain our tinances In a stroni;- coudition. we want to make some niairrial ad(lilJon.>^ to (Uir iev<'une i;i some otiier (luarters, and we propose to do it in the way of making a small in- crease in the duties on sn^ar. although the duties we propose will be very much less iliau those which prevaded iu Canada a few yc.-irs auo. Ai <,YJ.. if we take ihai as pro- per standard, tlie duty shall be OoA cents per 100 pounds. But tliere must be considered In that ciiuneciiiiii ilu' prcfereniial tariff to which 1 have referred, and wliich will lake effcci .as regards the West India sugar afier the Isl day of .Vugust next. If we apply ihat preferential tariff to the lioA cents per 100 [lounds, the? (piarler of it under the prefer- ential rate will be 10 a7-50ths, which will leave the preferential rate at 40i cents as against the existing rate of 50 cents per 100 pounds. That is to say. upon so much of our sugar consumption as we may be jilile 111 obtain from tiie British West Indies under the new order of tilings tliere will be 1:0 increase, but on the contrary there will be a slight reduction of duty, it being— if the average as given to me is correct — I9J as against 50 iu the present tariff. But as respects that portion of the sugar whicli may not come from the West Indies, liui which may come from other countries tliere win of course be the small Increase I liave mentioned. Mr. WALLACE. It must be the produc- tion of the West indies ; not only sent from there but iiroduced there. The MINISTER OF FINANCE. Oh. yes ; certainly. In the case of fractions of a degree we propose that where a fraction is live-tenths or less It sliall not count, but where it is more llinn live-tenths it shall count as a degree, so that for the purpose of revenue we will have no fractions, not oven to the extent of half a degree. preferential rate. Upon all sugar that may come in from the West Indies undei- tlie preferential rate we will receive no increase' whatever, but will receive a little less duty than uuder the present tariff ; but for what- ever may come in from otlier countries w. will receive .an increase to the extent of l.'i cents per 100 pounds. We think it will give us a moderate amount of revenue. On > can only guess at how much revenue it will give, because we have no means of knowiuL; as to what proportion of West India sng:ir will be drawn into our markets by this .ii' rangement. Our hope and desire is tlmt we shall largely increase the consumptimi of West Indies sugar. As I mentioncl ,i monuMit ago. our consumiition of sugar is 330,000,00t) pounds out of which we receive at present only 25,.500,000 pounds from tlie British West Indies and British Guiann. but we trust that the effect of this arrange ment may be to largely increase that. Ii our anticipations in that respect are reali/.r.!. we will of course get no increase of dniy from that source but will actually get a littli' less. However, upon so much of the suiiai' as may not come from the West Indies, we will get an increase to the extent of 15^ tents per 100 pounds. With resjiect to the duty on refined sug.ir, we propose to apply the polariscope to thin also. In the case of raw sugar we take .i- our starting point 75 degrees, but in the case of refined sugar we take as a matter "t course a higlier starting point. We propose that the duty on refined sugar shall be $1.08 cents per 100 pounds on sugar tfsliug 88 degrees, or anylliing below tli;ii : and for every additional ilegree there will be li cents per 100 i)ounds added, .just ;i^ in the ca.so of the duty on raw sugar, (hi what is called yellow sugar testing 88 tic grees, the Increase of duty under this ar rangement will be 8 cents per 100 poumls although the Increased duty on the r.iw material, or so much of it as may com.' from other countries than the West lii dies, will be considerably in excess. It you start at $1.08 for 88 degrees, and If you add U cents for each degree. you will find that the granulated ai The eltect of this upon the revenue is a oyj will bear a duty of $1.24J per 100 poumls very dlllicull (luestlon to deal with ami we as against the $1 duty of the present day can only guess at It. It depenils entirely upon That Is to say, the lucreas(> of the duty on luuv iiiucii s\israr mav come In umler the the retlnetl sugar will vary from one twelfth of a cent i sugars, rui as 24^ cent.' tlie higher fiease of a while iu tl ?ugars the per KK) pou TUB PR I have changes wl want now !"'ir, the new ale : That it is acveuteeu ol! be repealetl o iu the preseu and niueiy-ei, Jliall be subai 17. Ailiclos mauufatjLure may, v/hei, i any of si.ifli taken i:iut of .ula at tlie re llrilish protei' " D " to this . Tho Un Irelaui The )3ri The Bri Brit is! lowiin; The J lull Jamaica. T'lrks l! Th" Leo l)her-N tlie Vii The Wir cent a I Barbado( Ti'inidail nrltlPh C These colo "iihout rogai (il). Any otht cuKtom as l'av( prcfere: such CO I'l'nvlried, liii t" lif adnillteil 1'" bona (Ida t •ii'iiiiries entlt .Old that audi Importation of "liicli there lini of UiG labniir •!!;i! m.iv arise ^'irh beni>flta si C'M-Jt'iins, wliosf L'. The Mliiist I'T tli'j Govenioi I'l itisli coltinles (a). (b). (c) of a cent per pound ou the yellow or soft sugars, ruiinin.i^ up ou granulated as high .Ts 24i cents per 100 pounds, or praetloally on Uie higher and more valuable sugar an in- iiease of a quarter of a cent per pound ; while in the case of the cheaper refined ^ugars the increase will be about 8 cents per 1(K) pounds and upwards. THE PREPIiHKNTIAL SECTION AND SCHEDULE. I have now explained all the tariff changes which we propose to make. I want now to read, with your permission, Hir, ilie new preferential section and sched- ule : That it is cxuedient to provide that section seveuteeu of " The Custuiu.s Tariff, ISW " shall be repealed ou and after the tlrst day of August in the preseut year, one thousand eight hundred aud nuieiy-eighl, aud that tlie following section ;hajl be aubatituted therefor ;— 17. Aiiiclos which are the growth, produce or mauufactiire of auy of the folluwiug countries may, Nvhei. impirtod direct into Canada from any of surh countries, be entered for dutv or talten out of warehouse for consumption in Can- ada at the reduced rate nf duty provided in the British pr.jferential tariff, set forth iu Schedule " D " to this Act :— (a). Tho United Kingdom of Great Bi-itaic and Ireland, (b). The }3riti,sh Colony of Bermuda, (c) Tlie iiritljn Colonies commonly called ihc British West Indies, lucludlng the foi- lowin!; : — The Halianius. Jamaica. T-irI{s Island and the Caicos Islands. Th" Loo\\-ard Islands (AntiKua, St. Christo- pher-Nevis, Domin.'ca, Montserrat, and the Virgin Islands). The Windward Islands (Grenada, St. Vln- font and S* Lucia). Barbadoes. Ti'inidad and Tobago. British Gulnna. These colonies are admitted specifloally without ro,gard to any reciprocal conditions. (d). Any other British colony or possession the customs tariff of which, on the whole, is as favourable to Canada as the British preferential tarilT herein referred to is to such colony or possession. I'rovlded, liow,!ver, that manufactured articles to he admitted under such preferential tariff shall 1)0 bona tide the maniifa-^turos of a country or ('■iunlrte-5 entitled to tho benollts of R\ich tariff and I hat such benefits shall not extend to the Importation of articles Into the production of "MpIi there lins not entered a substantial portion of the labour of such countries. Any question thu! m.iv arise .is to nny artirls helnK entitled to siii'h benelits shall be de,5lded by tho Minister of Ciixt'ims, whose decision shall be final. ■:. The Minister of Customs, with the approval of th'j Governor In Council, shall determine what I'l illsli colonies or possessions shall be entitled to the benefits of th- preferential tariff under clause (d) of thi.s section. ."!. The Minister of Customs may, with the ap- proval of the Governor in Council, make su^h legulations as m-iy be deemed necessary for car- rying out the intention of this section. You will see, Sir. that under the arrange- ment proposed we nduiit by name the pro- ducts of Great Britain and the products of i the British colonies iu the West Indies ; and then we have a gener.nl clause whereby wr may admit the products of any other British colony the tariff conditions of which are deemed to be favourable to Canada. Under I that clause we will admit at once '.'e pro- ducts of New South Wales and the products of British India ; and if the tariffs of any other colonies are or shall be made favour- 'abifc and satisfactory to Canada, tiie same beneUt may be exte.-x.ded to them. 1 shtill ' move ; ' ,. ?"'"" "■ '•'^ expedient to provide that Schedule i IJ to " The Customs Tariff, 1S97," shall be ; repealed on and after the first day of August in I the present year, one thousand eife-ht hundred I aud iJineiy-eight, and that the following schedule ' shall b(> subi'tiruted therefor :— .SCIIKDl'LK -J)." BUITISH WIEFERENTIAL TAUIFK. ')n articles the growth, produce or manufacture 1 of the United Kingdom of Great Britain and Ire- I land, or of any British colony or possession en- I titled to thu benelits of this preferential tariit under section seventeen, the duties mentioned in j Schedule ■ .\ " shall be reduced as follows :— -The leduiiiiui shall be one-fourth of the duty men- 1 tioned ill Schedule "A," and the duty to be ; levied, collected and paid shall be three-fourths ef the dutv nientijned ;u Schedule " A." Provided, however, thit tliis reduction shall not apply to any of the following articles, and that !-uch articles shall in all cases be subject to the dutK^s mentioned in Schedule " A," viz. :— wines, malt li-]uors, spirits, spirituous liquors, liquid medicines and articles containing alcohol ; to- bacco, cii^ars and cigarettes. Provided further, 'hat the reduction shall only apply to relined sugar when evidence satisfactory to the Minister of Cuslo/ns is furnished that such ipfln^'il su'4(ir has been manufactured wholly from raw sugar produced li\ the British colonies or posseusious. That ia to sny, thnt innsmimli ;is we would not .'idmlt foreign sngiii' in its raw state un- der our pri ferentiai tiii'ilT. we will not admit the refined sugar made from that raw sugar; but if auy augnr Is I'ctined in countries en- titled to the benefit of this preferenc(>. from sujiar grown not only in I lie Wc-Jt hi.-jii-.;. but anywliere in tlie Brilisli possessions, that refined sugar shall be admitted Into Cannda on tlie terms of the lu'eferenllal tariff. ' I I .J ' 'J ' ' fit ill I If! ill I i.:a I . 38 COXDITIO.N AXD PROSPECTS OF CANADA. As we look back, Mr. Speaker, ou tlio events of the past year, we have much cause for gratification, and when we turn to thc futuro we find it bright and encouragrins:. The signs that meet us everywliere in Can- ada are those of peace, progress and pros- perity. The one question wliich serlousiy threatened tlie harmouy of oin- people and the good-will which should prevail between our citizens of different creeds— a question which a few months ago was a luirnlug one and a cause of great anxiety-has been so happily settled that now it is scarcely men- tioned. At no time in the history of the Do- minion have tlie people been more united, more harmonious, and more liopel'ul and confident respecting tlie future of our coun- try. In the centres of manufactures, trade : and commerce, there Is an activity which tells of confidence in the present and in the future. The great agricultural interests, which ere the foundation of our country's prosperity, are on a better footing than for many years past. Encouraged to produce not iinly for tlie liome markets but for the markets of tlie wofld, our farmers every- wliiTf an> apjilying themselves to then- work with intelligence and skill. The ships which have come to our seaports during the past year, are insntllcient to carry the Increasing volume of commerce, and the shipwriglits of the world are busy in con- Btructiug new vessels for this trade. Our long delayed canal enlargements are being, pressed forward to early completion, and give promise of affording increased facili- ties for the transportation of tlie products of the groat west to oiu- sliipping ports. Railway enterprises east and west are ac- tively assisting In the good work. The flsli- ermen of our Atlantic and Pacific coasts continue to reap the rich harvest of the sea. In all directions wo (Ind an extraordinary development of the mineral wealth of the Dominion. The powerful magnet of gold, which Is found in several quarters of the Dominion, is doing much to attract capital and population. The new mines In the pro- vince nf Ontario give promise of great de- vi^ic.pjiii'iit ;!ii.| pvDti! l!i llic cast, tin- iiiiucs of Nova Scotia, which havi> been working with considerable success for many years, are to-day giving most satisfactory results, and now discoveries are constantly being made. In the west, the province of British Columbia is steadily growing in fame as a rich mining country. The northern regio: s of our Dominion, which were long regarded as of little value, have become sources of boundless wealth. A few years ago. as 1 sat at the breakfast table in a Paris hotel, I was addressed by a neighbour, of whose na- tionality there could be no doubt. " Sh'," he Bald, " from what part of our little Uepublic might you be ? " I answered that 1 was not from his "little Republic" but from the greater one to the north. My friend was puzzled for a moment, and I had to remind him that the greater part of the Nortli Am- erican Continent did not belong to his " lit- tle Republic." luit was under the Hritlsh flag. " Well, sir," he said iriumpliantly. " we do not claim to own the ice house." These great northern regions, wliicli my American friend described so conteminn- iiiisly as "tlie ice liou.se." are to-day cmiuhM among tlie famous lands of the world. 'I'ln' "Yukon" and "Klondike" are worldwide names, and the land through whicli tln-se rivers run is attractii"; to itself many thou- sands of people froia the great centres of civilization. In nearly every deparliiicnt if industry in Canada there is activity anil conrtdence. Wo are not foolish enough to ciaiiii that all this lias been brought aliout by our policy, althougli we are well aware that if the results had been tlir re- verse, the blame, justly or unjustly, would • Imve rested upon our shoulders. We ate well aware, and we gratefully recogiii/.i' the fact, that the prosperity that has come to Canada is due to tlie lilierality of a kind ' Providence in giving us a bountil'u". harvest. One thing we do claim, and all we claim, as respects our i)oiicy, is that so far as legis- lative measures may help to encourage ami strengthen a peoph?, such has been tlie re- sult of the action we have taken. Against the representations of our opponents we place the record of the past year, and the judgiiient of tile Kiupire at large. .N'ever was a tariff policy submitted to Parliament, which was received witli greater satisfac- tion by the people of Canada, than that which was .nnnottnced a year ago. Never In the history of the British colonies was a -measure proposed which In so large a de- grtie commanded the Interest and received the approval of Great and Greater Britain. 39 It was hailed with joy liy the friends of British Imperial unity in every land. It was commended by Her Miijesty in her Speech from the Throne in the Parliament at Westminster. It was the subject of thou- sands of articles of the most commendatory character, in the British and colonial press. Rudyard Kipling, the poet of the Empire, was quick to feel the wave of sentiment tliat passed over Great Britain, and within a few hours from the announcement of the tariff, he embalmed the subject in spirited lines which will live in the history of Canada, and whlcn, even if, as some have thought, they may convey Inaccurate impressions as to the coldness of our climate, will nevertheloss tell to every reader that in 1897 the heart of "Our Lady of the Snows" was full of warmth and devotion to the interests of the Empire. British statesmen, both publicly and privately, expressed their satisfaction with Canada's action. The Colonial Secre- tary, the Right Hon. Mr. Chamberlain, in an offlclal despatch to His Excellency the Gov- ernor General, which I shall place on the Table— a despatch communicating the de- cision of Her Majesty's Ministers respecting the effect of the Belgian and German trea- ties—used some words perly quote here : which I may pro- j " I deslrs," said Mr. Chamberlain, "to add. !a I onnclusiuu. that the action of the Durainion Guv- I ei-ninent and Parliament in this matter, although, I iinfort.iinalely, its full effact will be temporarily I postponed, has been warmly welcomed and appre- ! cialed by Her Majesty's Government and the j people of this country, as a measure which can- not fail to result in material benefit to the mother count; y and to Canada, and to weld together still more firmly the ties which now unite them." Sir, the policy which Her Majesty's Gov- ernment so warmly commenJed, was a po- licy designed to establish preferentif^l trade between Canada and the mother country. To-day we submit a proposal which enlarges the sphere of that preferential trade. To iliiy we propose to Include within its benefits a large group of British colonies, the affairs of which are at this moment a cause of much anxiety to Her Majesty's Government. Thus step i)y stop the gaod worlc goe.s on. One step remains to be taken, and I believe the day Is not far distant when we shall be able to take It— a step which will extend the benefits of the prefe -ence, not only to Great Britiain and the ci onies which we liave now Included, but to eYery colony and pos- session of the Empire.