^"^^W >^. ^na *MAGE EVALUATION TEST TARGET (MT-S) /. ./.,v &< t/i Z '^ LO 11.25 1^ us 11° 2.2 IM 2.0 118 M. 111.6 Priotcgraphic Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. 1458C (716) 872-4503 ,\ iV L17 'v^ '» ^^^tA ^O w?< w.^ i/x CIHM/ICMH Microfiche Series. CIHM/ICMH Collection de microfiches. Canadian Institute for Historical Microreproductions / Institut Canadian de microreproductions historiques ■s Tschnical and Bibliographic Notes/Notes tnchniques et bibliographiquas The Institute has attempted to obtain the best original copy available for filming. Features of this copy which may be bibliographically unique, which may alter any of the images in tha reproduction, or which may significantly change the usual method of filming, are checked below. y Coioureri covers/ Couvarture de couieur I I Covers damaged/ Couverture endommagee Covers restored and/or laminated/ Couverture restaurie et/ou pelliculia Cover title missing/ Le titre de couverture manque Coloured maps/ Cartes g^ographiques en couieur Coloured ink (i.e. other than blue or black)/ Encre de couieur (i.e. autre que bieue ou noire) Coloured plates and/or illustrations/ Planches et/ou illustrations en couieur Bound with other material/ Relii avac d'autres documents D D D Tight binding may cause shadows or distortion along interior margin/ Lareliure ser^ee paut causer de I'ombre ou de la distorsion le long de la marge intdrieure Blank leaves added during restoration may appear within the text. Whenever possible, these have been omitted from filming/ II se peut que certaines pages blanches ajout^es lors dune restauration apparaissent dans le texts, mais, lorsque cela 6tait possible, ces pages n'ont pas iti filmdes. Additional comments:/ Commentaires suppl^mentaires; L'Institut a micrcfilme le meilleur exemplaire quil lui a 6t« possible de se procurer. Les details de cet exemplaire qui sont peut-dtre uniques du point de vue bibliographique, qui peuvent modifier une image reproduite, ou qui peuvent exiger una modification aans la mdthode normale de filmage sont indiquAs ci-dessous. r~n Coloured pages/ Pages de couieur Pages damaged/ Pages endommag^es Pages restored and/oi Pages restaurdes et/ou pellicul^es Pages discoloured, stained or foxe( Pages ddcolor^es, tachetdes ou piquees Pages detached/ Pages d^tachees Showthrough/ Transparence Quality of prin Quality in^gale ds (impression Includes supplementary materia Comprend du materiel supplementaire Only edition available/ Seule Edition disponible [~n Pages damaged/ J I Pages restored and/or laminated/ [~a Pages discoloured, stained or foxed/ [~~| Pages detached/ ry[ Showthrough/ I I Quality of print varies/ I I Includes supplementary material/ r~[ Only edition available/ 1 a 1 V l\ d e b ri ri n D Pages wholly or partially obscured by errata slips, tissues, etc., have been ref limed to ensure the best possible image/ Les pages totalement ou partiellement obscurcies par un fe'iillet d'errata. une pelure. etc.. cnt 6t6 film^es k nouveau de facon a obtenir la meilleure image possible. This item is filmed at the reduciion ratio checked below/ Ce document est film* au taux de reduction indiqud ci-dessous. 10X 14X 18X 22X 12X 16X L 20X 26X SOX 24X 28X 32X Th« copy filmed har« has bean raproducad thanks to tha ganarosity of: Seminary of Quebec Library Tha imagad appaaring hara ara tha bast quality possibia considaring tha condition and lagibiiity of tha original copy and in Icaaping with tha filming contract specifications. Original copies In printed paper covers are filmed beginning with the front cover and ending on the last page with a printed or Illustrated imprea- sion, or the back cover when appropriate. All other original copies are filmed beginning on the first page with a printed or illustrated imprea- sion, and ending on the laat page with a printed or illustrated impression. The last recorded frame on each microfiche shall contain the symbol —^(meaning "CON- TINUED"), or the symbol V (meaning "END"), whichever appiiaa. Mapa. platea. charts, etc.. may be filmed at different reduction ratioa. Those too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to rigi^t and top to bottom, aa many frames as required. The following diagrama illustrate the method: L'exemplaire Kmi fut reproduit grice k la giniroaiti da: Siminaire de Quebec Bibliothique Lea imagea suivantea ont 4t* raproduites avac la plua grand soin. compta tenu de la condition at de la netteti de i'exen.plaira film«. at 9n conformity avac lea conditiona du contrat da filmage. Lea axempiairas originaux dont la eouverture an papier eat imprim^ sont filmte an commanqant par la premier plat at an tarminant soit par la derniAre page qui comporte une amprainta d'impreasion ou d'illustration, soit par la second plat, salon la cas. Tous las autraa axompiairas originaux sont filmte an commandant par la premiire page qui comporte une empreinte d'impresaion ou d'illuatration at an tarminant par la darnlAre page qui comporte une telle empreinte. Un dee symbolea suivants apparaitra sur la demiAre image de cheque microfiche, selon le caa: le symbols -♦. signifie "A SUIVRE", le symbols V signifie "FIN". Lea cartea. planches, tableaux, etc,, peuvent itre filmte i dvta taux de rMuction diff6rents. Lorsque le document est trop grand pour dtre reproduit an un seul cliche, il est film« d partir da I'angle sup^rieur gauche, de gauche k droite, et de haut an baa, an prenant la nombre d'Images nteessaire. Las diagrammes suivants iilustrent la m^thode. 1 2 3 1 2 3 4 5 6 Ji_%^ M'/arJa^., >t^z. '^ FINANCES OF THE DOMINION OF CANADA BUDGET DELIVERE Hon. a. W. McLelan, J MllSSTER OF FINANCE. 'S "S M IPS| OFCOMMONS O -0) 0^ 0) ^ <^ g :^TH MARCH, 1886. « ii CO (5 " OTTAWA : PRINTED BY MACLEAN, ROGWR & Co., WELLINGTON STREET. 1886. if FINANCES OF THE DOBlNiON OF CANADA. BUDGET SPEECH OELIVBRID B7 jioN. p.. JI. McLelan, MINISTER OF FINANCE, nr THE^HOUSEIOF COMMONS OF CANADA, Tuesday, 30th Maboh, 1886. Mr. MoLELAN. Mr. Speaker: In moving that the House resolve itself into> Committee of Ways and Means, I desire, as has been castomarv, to make some statements respecting the position of oar>ccounts. This duty has for a number of years been discharged by one who has made fiscal mat- ters a life study, and whose clear and able statements com- manded the admiration of the House and the confidence of -the country. I am sure that all in this House will join with me in expressing deep regret that the condition of Sir Leonard Tilley's health has compelled his withdrawal, at least for a time, from the more active duties of public life, and I am sure also that I but give expression to the feelings of those aroun^ me when I utter the wish that he may be restored to health and may have many happy years of useful and honorable life. In attempting this task, without having bad perhaps sufficient time to become familiar with all the details of my Department, I should crave the indulgence of istratlon nF iu * P^"°^ *^^^^ t^e admin- isiration of those em nent men-an TinV.«^i ,. with f>,o ; ^ ^ '^°°*''^ «^««e tl^at period ^ith the contrast which the Dominion of Can,!f .re tt "! H "" '" '"^ """ '» "o «>->f7 in the worid I' «m man m the DDminion of Canada In ififl7 a/aTeat " T''''''' '''' ^^ «^«^^ ^^ ^^^ -^ had theToT '^' '"' '' "^«'^^«^-* <^-^-ces. We had then Ontario, Qaebec, Nova Scotia and New Brnl wiok, covering an area of H^annn ^' 6 «" area or .-Jd8,000 square milAH wJfT, » population of 3,33 1.000. On the east we ha " added It cent. Bat ,t „ not m increased area, it is not in added lies. In 1867, the two Provinces in the ea«f ner. In winter, and f.r siz month, in the year we weJl dependent npon ,he United S.atea for all inCZ ^ rovmcea. In the we«t, on the admission of British Columbia 8 and the Territorios, the obetaoles to interoonrse were greater even than the increased distances, and for all communication and interooorse we were dependent upon foreign rail- ways, foreign hotels, and foreign conveyances. For fifteen or sixteen years we have been paying tribate to a foreign but a fnendly power for all intercourse westward. To^iay the iron rail, leaving the waters of the Atlantic, goes west- ward and westward until it touches the waters of the Pacific Ocean, and gives na an unbroken highway from the extreme east to the extreme west ; so that we shall from this time be able-to pass to and fro thereon without being remind- ed, as hitherto, by a foreign flag and a foreign Custom house that we were dependent upon a foreign people for our iuter- course. The year 1886 will be in all future Canadian his- tory a red-letter year, as being the year in which we obtained our national, our geographical independence; the year m which ahighway to pass for pleasure or profit in peace or in trouble, was opened to us throughout oor whole terntoiy. Something more than thirty years ago, the public men of Nova Scotia were busy discussing the pro- priety of commencing the construction of what is now a portion of the Intercolonial Railway, and a link in this great highway, and the men who were then discussing it the naen who were most earnest in the matter, said tons that the importance and value of this road would grow in the public estimation of the people of Nova Scotia, and in the estimation of the people of all the Provinces, that It would be commenced and would go westward until It would eventually reach the waters of the Pacific Ocean ; and we were told that many of those who were taking part in the discussion would live to hear the scream of the locomotive in the Rocky Mountains. Sir, that pre. diction has been realised, and, if all, or if even in part the other predictions respecting the great value and importance of this work, in binding together the several Provinces, in strengthening and maintaining British interests upon thig continent and developing the great resources of this ooun- tiy, and drawing to us a share of the trade of the millions of people who swarm the islands and the countries lyini. beyond our western terminus, are realised, then the men who grappled with and carried out this mighty undertaking will bo regarded as benefactors of this country and will receive the respect and gratitude of all true Canadians And Mr Speaker, I may add that our right hon. leader' who has labored so diligently and so successfully in carry- ing forward this work, who, while not unmindful of the interests of the older Provinces, never lost sight of this undertaking, although often assailed by the opposition of gentlemen opposite, and sometimes met by the fears and doubts of his friends, yet never lost sight of tJiis work but labored faithfully, zealously and intelligently U> com! pleteit and bind together and make one people all who dweU beneath the British flag on this continent, and etrengthen and maintain British institutions-if those pre- dictions shall be in any part realised, he will have the highest reward that can come U> the greatest statesman, the satisfaction of knowing, of believing, of seeing, that ha has wrought a great advantage for his country. Sir, I believe that those predictions will be largely realised, and that a great future lies before us. But I must not detain the House to speak of that future. I was contrasting for a moment ID passing, the past with the present, the condition of things .n 1867 with the condition in 1886. And, Sir, it is not alone, .n the increased area, nor in the improved means of interK^om- munication which wo now have, but the change is most marked in the great improvement in the condition of the vast body of the people. Measured by every standard that tests the condition of a people, we see that they have made great progress, by the accumulations in our savings and our commercial banks, by the traffic upon our railways and upon oar w Aters, by the growth of our towna and cities, by the private and public buildings which adorn them by the comfortable homes of our rural population, by churches and schools, and all the varied avocations in which men are engt^ed, and which mark the growth, the progress, the wealth and happiness of the people. Sir, in spoakiog thus, and expressing gratification at the growth of the Dominion, I do not forget my experience in the past with some minds narrow by nat ure or by preju- dice, who will say that it is, perhaps, not in good taste in a Nova Scotian, not in good taste in me, particularly, to express this gratification. Sir, I desire a word of personal explanation, and I am moved the more thereto by the fact that the leader of the Opposition, when nothing else could be found to occupy his great mind at the open- ing of this Session, directed my attention, when I should occupy this place to-day, to the position I occupied in 1867. It is true that Nova Scotia was opposed to Con- federation, but mainly owing to the financial terms then proposed ; it is true that I joined in that opposition, but when the act was passed I took the earliest opportunity to define my position as a candidate for this House. Addressing a large public meeting of my constituents, 1 said- and, if I remember rightly, my remarks were reported by the gentleman who occupies the chief place at the Table of this House— I said : The Act of Confederation has become law, it is the Act of the British Empire, and no power that we possess can void it. We shall live under it, we shall test its working, and if I am elected as your representative in the House of Commons, believing that the terms on which we are admitted are unfair to Nova Scotia and may be amended, I shall labor to have them amended, and I shall join those who will endeavor to promote the best interests of the whole country at large. In substance, that was my pledge to the people of my eounlv ■ .nH h , my utterance, were in ,hi ^eeL ^ k """"' '"" tion o< the terms on wl,i„h « t ' ^ *"" * ■»«««'»• «". -a.y I .J/: t: '::<:;'' -"r"""'- ^°-' ""i^g .Mod to «o«re better ImH?" "f '"""'• """ "own by the „., .„d in CiL / "' ''"'° ^™"'"" giWng. .„a h„ g";; ';r?j.7 "'"' ""»" "bo were pledge redeemed I rj J! T^'^' ^""^ "'"' *''«l ««tiefaction .t the pro«veno doobt, h.™T„! ^^ '*'• *'■'' ""oh, I P'-"^ Pernlit :: grtrT'T "^ ■""•• «°""™» P0l«.B which .eem tJ «.n for c"*" /"'"'""' '" '"«"" "ealiogwiththereceiproftss ?"""""'■ ^■«' «"'- wenne likely to be reol.!i f . *°' "''"'=''' P'""" »• that amount fhe si " oolT"'"""' '"'"°'"»« '" tkeaale of Dominion land! Th! TT"^ "«eipte from from the several sonr... "'"'' ""<""" "Oeived '■»onntfromtmLT„7,rr '"*''•""'■•"«• ''^ -'"'"' tl-o '»e estimate he.^g .90 sT T ''T'' *"" «— - oeiplsand in the estfT.'! ^"^ "' ""' "«■»» "■ t^e «• J'orinstanoe. theCoIrrrn''""'''''''''""^"'-'^- <'«;e..,900.000.itdidS:n~^^^^ from Public Works inr^i.;^- n ., '^'^''^^Z. The revenue produced ,1,997 00! T T '""^'"' «'.900,000; it i" altogether ,605 838. ?°"' """""»' •'"'"gl't «oo,.omi„irs^;::r-^^^ '■■■p-on^o receipts Lmth.r:r;.rbrt: troabiM in the North- W«.t, on «ooonntofwhic»i (heniceipta from th«t source nimost cowed, and redaoed the amoant below the estimated roooipta of 1800,000. Then there are the receipts from Customs and Kxoiae. When Sir Leonard Tilley made his Budget speech about this tin.o last year, he esti. mated the Customs to produce $19,000,000; they did pro- duoe »18,93B,42e, being tBifiU abort of the estimate. Ifhon. gentlemen have referred to the Trade and Naviga- t.on Returns they will have seen that the greater portion, of the goods entered for duty in the Dominion during the past year were fully up to the estia..tes. The main falling off was in articles that are being manufactured in the coun- try manufacture, of cotton an-- woollen goods, of iron an. .eel and the produoU thereof. The duties upon those artl. cle. was ,3,167,220.84 in 1884, and the amount realised m 1885 » 600,5 10. As hon. gentlemen will see, there waa « large falling off in the receipts from those sources io con. seqaonco of our manufactories being able to furnish a larger porfon of the goods required for the wants of the people. Thereccpta from Customs will, no doubt, constitute the •tems wh,ch will receive most attention from hon. gentle- men opposuo and all who are opposed to the National Pohcy, and who desire to preach and put in practice the doctrine of Free Trade so far as is possible in this country. I may. therefore, bo permitted to make a few observations on *18,935,426 from Customs last year was collected on agross importation for home consumption of «103,710,109, being 18-4i percent, under theNational Policy tariff. Comparison has been made on many occasions between the taxation of the Dom,n.on and the taxation of the United States, and the m the U„,tod States. Xt is, however, shown from the «tarns of 1885 i„ the United St,to., that the percentage of taxation upon imports into that country was 31 45. or ^ i I I I , 8 ^0 ...,ffT f ">9t"nff as at present arranged even 4 '"J '';'\''-- «»"-- appLed in 1878. Now, even 4 pe, cent, of a difference of taxation is, perhaps a eo»s,derah one ; but it wonid not wana lirtle 1ST i8T;:e™ ,m4' j\ ""'• ^^^ ^-'°- rt.oq„„„„ ■ »12.W5,693, being, as Ijhave said, 1 03 upon an .mportation of t91,199,577. The larger you at l! "^ ^'""'""S''' *°'' y«» '"'-e to look hoe X'Xs to"' T'""' ''"'' "' >«'« -•"> ■ -ount'IfZiioriCd Vl"""'''"r "^ *■"• In JS'ia ,v ■„ , P"™" "•'' *no respective tariffs. ,•1 .!'/ " *" "'»™l«'-<^o oonsump ^n of the peopje. but a iarge portion on the way and yet, be,.,p free, they were called importations fo^ ^ZrTTJ • '"''™"'' ""'^ ""'^ P--^ 'hrough th, given" Z T"""'' *° "'''^' '""'^^"''^ '^» -<""" given as passed ink Bail.- ' abroad, ion. In ffs was 9 whole iceesary >nsamp- 9 way intries ;. •ns for gh the iporta- mount t year is taken over the whole amoant thas increased, it shows to the advantage of the tariff of 18t8. Take out that amoant over thirteen millions on breadsta£b, free, and you have $7 7,7 47, 1 It left as the necessary im- portations of that year, npon which $12,795,693 was col- lected, which brings the percentage up to 16*45 per cent., loss than 2 per cent, of the taxation of 1885. If you look at the imports of 1885 and the collections thereon you will find that the increase of taxation is not on the necessaries of life, not on what is consumed by the poor man, and not what will justify hon. gentlemen opposite in saying that the National Policy tariff is grinding down the poor man, and driving him out of the country. It is not necessary, Mr. Speaker, that I should detain the House with a very close analysis of the importations of 1885 ; bat I may take up two or three special lines, and show that the increase of revenue and increase of taxation do not result largely from impositions on the laboring classes. In 1885 we col- lected on silks and velvets, 81,029,657. In 1873 we only collected $539,981, an increase of $480,676 ; and that leaves as much silk and velvet for the poor man in 1885 as was imported in 1878, On spirits and wines we had an increase of $642,100 ; on jewellery, gold and silver- ware, $156,728. Now, here are three classes of goods which are considered as luxaries, on which we collected an excess over the amount collected for 1878, of $1,279,504. Now, if you take this from the gross revenue received from Cus- toms, it leaves $17,^55,924, which would make a fairer oom- pariaon with the receipts from the importations of 1878 ; and when you do that. Sir, you bring the taxation down ta less than throo quarters of 1 per cent, over the taxation of 1878 , And I am sure. Sir, that if the investigation were pursued further, we should be able to show, having no duties on tea and coffou, and many other things which are largely consumed by the poor man, that the tariff under which^we 10 tiemea have been wont to exoUim ■^^°* ^^''^ Which we are operating TZeTZ '"' ^"^^ '^"'^^ a protective tariff Bnt iP *. ' ""^"'^ ^' ^« ^'aWed fconily upon ''^ "-o «■<> ".Wdle classes "r be "l"" """'^ "«'" "P"" 'V that if Were to pursue the"^" ,"""• ''°''' «"' ^ specially framed to bear lilhtt in 7 . ' ""^ '"'"'f *» I^O"' classes; and, moreover r , ^^'"""' "J"" "■« of the working of ttaUr^h' !' "' ''"'" «"" "■« "»<"' -d.heiahori^,J:\'-^J«J^^-^^^^^^ •mployment which keens .T I ^^ »"« S.ven him that oo'-try, and that is T T^''^ '""'™' »■" "f the -^ «ovemment fraZing ."S r,/"^ *''"'-*''«' -to «!"« employment to ., ^^°°" ''*™ '" ^"^ -^»r,i,,t,,„uTh:u ^^iriftt "''^''' ""<■ And the result of Ihia t.riwi, u ""* """"nunity. giving employme ;,".??'"."' '"•' *""' "« ^ave bJn -ble, f^m the co„dl„ I ' '"'^^°'' "'"' '« "o »« ciothe the wortia T """"f"'""-. 'o feed «"" to put in r ;? T" f "o^day and holiday: he earns' his li^ « " /, "" '"''"™°'"^ '^ -"'^^ imported into the col r" V"^' ""'" '"^^ ""^ country „„der the tariff of 1878. 11 The receipts from Excise have been $6,449,101 as against an estimate of $5,500,000. The large increase In theBxcUe is to be aocoanted for by the fact that distillers and others fore- stalled tho changes that were made in the revenue and entered large quantities of their goods. The receipts from Po8t:Office, Eailways and Canals, interest on assets, and miscellaneous sources, including Dominion lands, amounted to $7,806,089, showing a marked and gratifying increase since 1879 amounting to 88-3 per cent., or $3,665,321. It will be noticed that I have included in that amount the receipts Jrom Dominion lands. During the five years that hon. gentlemen opposite held the Government, all the re- ceipts from Dominion Jaads were taken and counted as part of the revenue, and my hon. friend and predecessor, Sir Leonard Tilley, followed the same course up to 1881, placing them as part of the receipts from consoli- dated revenue account. From 1881 to 18S6, Sir Leonard seems to have placed them to capital account. I suppose the reason will be foand in the fact that he had a large surplus each year during that period, and it was immaterial whether tlrey should be placed to capital or to revenue account. But, Sir, I think the House will agree with me that as we have made large expenditures in the North- West m opening up the country by railway, and incurred a large debt for that purpose, as we have made large expenditures m survejs in the North-West, for Mounted Police, and in Indian treaties, incurring large liabilities, it is but right that whatever revenue or return we should have from the lands in the North-West, should be placed to revenue ac count to meet the interest that we are paying on' the ex- penditures, and the sinking fund that we are providing in order to pay off that indebtedness. I think the House will agree with me that we should do that instead of increasing Ihe taxation of the country. Should we receive from Ihe lands in (he North-West a larger sum in any one I! It year than would meet the ,i„ki„g f„„<, „ti,i „, ^ Merest ,poa our indebtedness for that expooditu , then .t .n.«ht very well be p.aoed to capita. aJunt, bu;* u U that po,nt .s roaobod, I think we are justified in placing ULTL """""' ''"°°""'*' *'"' I have therefore proposed for the present and future to deal with it in that manner, calling it and using it as so n>uch revenue, instep of m„,eas.ng the taxation in order to meet our wants. The amount received from Dominion lands, as I have making the total receipts for the rear on <..onsol,H»..H year s expenditure. This is of two classes-the ordinary "p;" .'are contemplated by Sir Leonard TiUey wh n he made h,s estimates, aud the exceptional expenditure causM by he unfortanato outbreak in the North-West. We m 1 I think, consider them separately. Dealing fil wifh 1 fiud tbattherewaspaid through the Department of M H«a «d I^fence tbesnm of ,1,697,85. .and.b/tbe CompVroft ;:^ Mount <, p„,.„e, »9a,950. There ha, also been an in ™a^ »82,37» The two first items together amount to ,1,7 , »«o ,4;^ " ^™°""'*^' °f »3».<>«.060, leaves the »W u ' ■ "' '«"'"'' ""» "O^'Ptaof ,33,190619 showing by taking out only the expenditure on the MounUd Police and on Militia and Defence, a deficit „ ponditure of 883,375, you have a small surplus of ,27 741 I may say here that the additional receipts from Exete have reduced the amount of the d -fieienry for the " ^ 885, and have iocreased the deficit which wl I we have to pro- is there, and (he )endituro, then unt, but until d in placing it, ieonard Tilley have therefore ith it in that venue, instead Bet our wants. 8, as I liave ^3 8393,818. 1 consolidated I there is the -the ordinary illey when ho iitore, caused it. We may, ig first with -he outbreak, 5nt of Militia )mptroiler of an increase outbreak, of ■' to $1,791,. enditure, as leaves the $33,190,619, ire on the a deficit of Indian ex- of 637,74 1, •om Excise f the ye&r which we 13 anticipate for 1886. Taking the receipts, and crediting them all to the year 18S5, it will ba seen that on the ordinary expenditure, exclusive of the ex- penditure caused by the trouble in the North- West, the accounts about balance each other ; but as it will ba seen later, that we anticipate a deficit, exclusive of the expendi- ture in the North- West, for the year 1886, 1 think it would be but fair that the over-expenditure for 1836' should be divided between the two years, 1885 and 1886, because a portion of the Excise revenue due in 1886 was anticipated and paid in 1885. The expenditure, it will be seen by the^coounts submitted, differs in some respects from the estimates Sir Leonard Tilley made. The charges of management were increased $63,518; the sinkingfund, $365,416; the premium on discount and exchange, $108,988; public works, $77,848 ; and miscellaneous, $76,109. On other items there has been a decrease— On civil government, $37,186 ; on legislation, $33,845; on census, $24,941; on railways and canal8,$48,073; on mail subsidies, $125,194 ; and on Liquor License Aot, $57,770. The first item of over expenditure I may refer to is the charges of management, of which the chief part arises from the commutation of the stamp duty on the 3i per cent, loan of 1884. The difference in the sinking fund is made up of two items— a half year's sinking fund invest- ment in the Consolidated Canadian 5 per cent, loan, which was not estimated for on account of its falling due on the 1st of January, 1885, and a half year's sinking fund invest- ment on the Dominion Loan of 1884, which was not floated when the estimates were made up. I suppose Sir Leonard Tilley intended *o take up the 5 per cent, loan alto- gether, and re-issue witLo i a sinking fund. As the House is aware, he converted that into a 4 per cent, loan, leaving the sinking fund. The premium on discount find exchansre &^!!^e.3. filmrtsf; at* on the gold^ we brought to th disooani country in connection 1(1! ••=■: ill \t .u^: IU!'i II ^Jth the loan contracted in IftHn n river service there is an in. . ^° °°^*" «°d i/uore 18 an increase of «iQ 9»7« over-expenditnrAnn*»,« • . 9iy,£76, cansed by expenditare of «fl? q-tr ^naians the increased oreaee of »7r,846, which was ei^Jl "" ezpe-ditare, were aa I have namTlt . "'""■■ Speaker, a„d I have BO doubt it n„:„ T^ "*' "'" onthiasideoftheHooso ^H ' ° '""'• °'°"''«" Account, fo, theyf :;:;: ''7'»";""»« «"" «.e Public that large surplus which s T^ ."" ^' ^*''"' '"«'^'' go surplus Which Sir Leonard Tillev »«« «Ki. W .e.tle„e~ rr ^ '.t* t:!: T '^'"'«' revenue : you ara «^..««f • . ^^" °°* «®' any . under .o^'^cUrS tl" It"'"" '"■ """ -'^ TiM was our expectatt^ hntTV" ""' ""'"'"" t™e that the increased "liv J Z^7t "h *" """ »any years necessitate our impoTlin^ 1 , , '"^"' "" manirfactur^s would be able To'^J f/^ "J/ «■» »- for revenue would «cnta«Ily ha™ to h» °" "^'P'""™™ of luxury, or on articles th tCe^n^t I'i °° "'"'" in the countrv and w„nU .7 ^ "^'' '"" P™d»oed , ana this is, perhaps, in some measure dna t^ k« gentlemen opnosito tk^,, « *^ ^^n- o upposne. ihey, on every occasion nnf K^a. the country statements of the enormous recZ; din T and profits manufacturers were rece v nJ C^^^^^^ . induced, perhaps, a larger number to 11 . '^"^ than the airo.m^..^.J.. , *^' *^ ^°*«'' nianufacturinir ■^'"■""'"' -ae^y^.jy demanded for the 15 time i and, Wore, Sir, from the more rapid increase of manofactaree than Sir Leonard Tilley connted npon the revenue has not co^e op qnite to his antioipatiT.^ I t^at the rece,pts and expenditnre shonid be eqnalij ba ,oad„pt,ng anew policy, there is m„„h diffloaltyt BO regn at,ng it and so estimating for the increase of home prod.cl.on, that it is difficult to .ake that harmol betwee„rece.p.s and expenditure which is always dcsi«b e lDth,oond,t,onofour country, when we were reauirinl' la^e expenditures on public works, there waT n„ Z' f p^e.>on of public works and the improvement of the country « was done during the time we had these suTplnsZ' They prevented the inorease of our indebtedness byZZ much and tended to improve theeredit of tb/dTnZ abroad enabling „s to receive money on better ttrTstt^ .f we had not been in the receipt of them. The facUha we have been increasing largely our manufactures is shown"' atd It "" T'' "^"^"'- ^"^ ™'«^«»- Of cotton a^idw^llen goods, and of the maunfacturesofiion and ste" NaSl PoT ':*''•'''■'">'>■ Whe-we started the Xfahonal Pol.cyand by protection gave employment to or „w„ people m larger n„mbe«,*and wh'nCewer^ "ot .0 » position to produce sufficient goods IT mand called for, in 1882. »33,588,168 I„ iZ J manufactures had increased tie m J^r^^ /n T »2W955,andi„ ,885 they' droppernmei, 720 Z reached the point at which they stl in IStl tLI« " Per^apa not a gentleman on either aide of the Ho^^ wio w I contend that the people have not been .U.7Z>^ more since then thari they could in 1878; xh^^ not one who will contend that m«~ 1-^^- *en consumed in .he country """tha^T Tw liot 16 The oause of the dooline is wholly due to the increased output of our manufactures. This is evident in the importations of raw material. The importation of raw ootton from 1874 to 1878. five years, aggregated 26,641,000 lbs. Prom 1881 to 1885 it ran up to 104,628,000 lbs., or more than quadruple that of the first period. In the same period the importation of wool increased by 15,439 124 lbs., and the exports decreased 6,627,563 lbs., or a differ- ence, comparing the two periods, of 22,066,783 lbs. for manufacturing. In 1885, the last year, the whole expJrtof wool was only $196,178, showing that we are manufactur- ing almost all the wool production of the country, and are importing very much more of some particular grades that are required. So with respect to every article, the employment of raw material has largely increased' Take the article of pig iron. Its importation has more than doubled, in addition to the large quantity being manufao- tured in the country. Having referred to some of those minor items, I may be permitted to deal with some of the larger items of the Accounts of 1885. Hon. gentlemen have noticed that the largest item in the Accounts is that for interest. The charge for interest and manage- ment foots up $9,652,123, and deducting from this the interest we have received upon our assets of $1,997,034, there is a net charge for interest of $7,655,089. Now this is a pretty large amount, and it requires us to go back and see what increase we have made to this since 1867. In 1867, the charge for interest and management was $4,787,080, and the receipts from assets were $126,419, leaving a net charge for interest in 1867 of $4,660,661. The net increase from 1867 to 1885 is $2,944 . 428. Now, it may be said, looking at all we have under- taken and accomplished, and all that was required to «upport our undertakings, we have only increased our expenditure under this head by $2,294,428 over the le to the I evident in ition of raw i 25,641,000 000 lbs., or »d. Id the ' 15,439,124 or a differ- 83 lbs. for le export of lanafaotar- y, and are lar grades ry article, increased, more than mannfao* of those ae of the s^entlemen joounts is . manage* fom this assets of terest of t, and it ave made irest and >m assets n 1867 of 3 $2,944,- e under- [uired to %sed oar )ver the 17 •oharge for 1867, and it will be rem nibored that we had to boar the charge in 1867 when we were only four Provinces with a population of 3,331,000. Now, wl en we embrace the whole Dominion, from the Atlantic to the Pacific, and have made largo expen- ditures to develop this country, it is easily seen that, without this, we could not have accomplished what we did. It required labor and money to dig canals and improve the navigation of rivers and lakos; it required large expen- diture of money to build wharves and piers, to erect harbors of refuge along our coasts, and to dot our coasts and lakes with lighthouses to facilitate navigation and connect us with the commerce of the world. It required money to oonstruot railways. Without it we could not have cut down hills, filled up valleys, and spanned rivers ; we could not have laid the iron rail from city to city, from town to town, as we have done all over the Dominion. We could not have sent the iron horse over the broad prairie nor cut a pathway through the Bockies, for him to take the traveller down through the plea- sant valleys and into the beautiful clime of British Columbia, if the hon. member for West Durham (Mr. Blake) will allow me to apply the term beautiful to that Province. We have done all this ; but to do it all, it was necessary that there should be large expenditure and that eur indebtedness should be increased, and the result is that we paid, to the 30th June, 1885, $2,994,423 more than wo paid in 1867. But I want the House to bear in mind that the population in 1867 was 3,331,000, that the total interest paid in 1867 was $4,660,- 561, after deducting the interest received on assets. That makes a per capita charge on the population of $1.39^^ per head. In 1885, we paid $7,665,089 on a popu- lation which I should be disposed to estimate at 4,800,000, but I presume the hon. gentleman will question that, and I shall take off 100,000 to meet his views, in order that there mav be no discussion nnnn 2 »<> that p.,<,'i„ is^VfjTs :;'""' ■"'" " ^»«» th.t h., been „ndeZ;'l '"?' """ "' '~'' « -^l look .t the condition omen T?""'*'' "" """' '« ber 1867 and thrwh' ^'^P'*' "««» ""^ wh,r,m.„. « t.x.tio» for .afro,, o « 6 ^eAl'" ""'^ ■""* *» ^ «o W 11.39 ia 1867. I .„ dl 1 ""' """■ ""^y ^«« «■'".- ^ speech LduvTb:^*°r-v'""' ""'• the Oppoaition, , oeleb«t^ . ""• "■* '""""w of «t.ntion of other oo„„We,/^'"T' •"' ""'•«'•«'• «WeredBoimport.„tth.ub"' ''°°°'' "'"'"""V >« oon- »ion stated thit we h«i"ij^^°"; «!""!""» »» """ooo.. Of mdebt^dneae beyond thTl^H."'^'""" '■"'«"" «■"» father, and r^e.s^b^l'^ ^"""" tbie matter a littl, Wing inoreaaed 'he bulTof" T"'^'" '" """ "''"^ "^ «-e ''»-«e»«e.anaa:r::'crmr:b''T ^''*- toterest in the financial year 1873.«U IbS^^^^^I "" they left office, five years after tJ ! «.ie'.677. When the year 1878-79 wrresl^S.'"'*^ '"' ""«"»'« or an averaee inoZL ' ' *" """"^ of «1,S26,217 • «• V wage locreaae per voar nfftanit o.#^ > »«n, oi«I year ending Jane 30th IsL 1. ' ' ^^ "" «»•"■ >'aa«7,655.089 Take from'th!^.'"''"'''"^^ '"'■■*"««' ««•>* in the'year when 27 ^Z'^'-'r "'■°'' *"'''"■''«'' k"e ,967,296 aa the nerino Lf !' ' '"'■ "^ "^ "Terage increase of «127 182 » ^•*'''' "^ «» •l-ring the period that tho elot ^Z, "" '*'"°°' *'«'•''** 1» the rat© of inoroasc had been 238 p«r cent, faster than it was from 1878 to 1886, he would not have, upon ao important an oocaaion, annonnoed to the world that wd were increasing the burdens of interest beyond the wildest imagination of leVS. But let me treat this in another way. In 1878-79 the interest per head of the population, taking it at 4, 126,366, was $1.66J; in 1886, on a population of 4,70^000, it is f 1.63 per head of the population, or actually 3} cents per head less in 1886 than it was in 1878, when those hon. gentlemen left office. And yet the leader of the Opposition announces that we are increasing the burdens of the population beyond the wildest imagination of any man in 1878. I do not say the amount of our indebtedness is less than it was in 1878-79. Oh, no. But I say that the credit of the country has been so improTed by wise legislation, by wise adminis- tration and by the systematic and proper expenditure of the money that has been borrowed, that we have reduced the rates at which capital has been procured. Capital demands from the borrower that the security shall be good, capital demands that the purposes to which the money is to be applied shall tend to the improvement of the security, and that the person seeking the loan shall have, under ordinary circumstances, the wisdom properly to apply that money to improve the security. When a country seeks to borrow, capital exacte the same conditions as from a private borrower. The hon. member for South Huron (Sir Richard Cartwright) seemed to bo fully im- pressed with this on the first occasion on which he went to England to borrow money. He then issued a prospectus, which has become, I may say, famous in Canadian history. He described the condition of the country as he received it from the hands of his predecessors. He enumerated in that prospectus the successive, the con- tinuous surpluses that had been given each year from 1867 downwards. He enumerated the various public works m M which had booo underlakon, which h.H h w«., »d wMch wo„.d,,e,daCil "'-"'«'' '- »d would c„.b,„ ,i, co„„t./to nlv 1 '"'°""°'^' ».ght b, lx>„owcd for the oomlL !f ,K """"^ """ hon. gentleman knew the X if h T "'"'"• ^''» roprcented, .„d he knewM.ut w« Zf t"' T''' '"' «blo in.pre.ion npon the mind, of i;::::"; ' "™" them foraooepling the lowest no..ihi . 1 P^P"™ But the hon. gootLan, S^roo"::^;'.:': '" """' ""'"''^■ contrary to what I wo» Id hi^ ' * °'"'" P"««°«. <«<• »ot test the : rtt hrdTt: r t" ""''"'■""' "lv.nt.ges that he set fortt fn h ^ ^"^ '" '"• •ffeot the money market «nH ,. ' P'''«P«»tiJs would wMchhemigktlZ™ ta p^Udrrt"-' "'' "' ■the condition of the country as Cn. „' '""""'^' 'P"^' »' purposes for which the moL7^2 f'^P*"""' ""of tie to inc^ase the revenue and m.r he '"""' "" *"'"'■« topaytheindebtodnessuAnmt-itv T^'^r ''°""'""* not test theeirecwbich that miKhtWeh^' " '""• '"<"'' mind, but named himself the price alwv IT ""' ""*"''" willing to dispose of the bonds 7 ,. '"' ''° "<"'"' ''« lowest possiuV rate. Now mI'^^''-^ P"'^ « *■"« very -y was that we have ^^m'^''^"'' """ ^ "-" ^ Of the country and our credit atold^aTCr ""^ "'"'""'» bonds bearing a hiffh ..t 7 ''**'''<' ^ave exchanged Wer rates "of Intlttd"!: tH/r ^"^' ^'"^^ "duced the taxation necessa^ ^ b plaL ."""t ""'' """ -order to meet our indebtedness. lu ,, "j, """^^"^ edness, on the whole h»» ^- • . "'"»'•<»"■ indebt. bave been able, from"! imptTcr::; o/^ ""^^ "" to make this exchange, and, LwithsL!! .. ~""'"■•^• «-med all the dobte of thetrlr;*":^ «■«". webave >-*.. aduuied between 1873 and isT ' """ •""" <^ >;,«* idd to this the l::^Z:fTZit ^ *''•• -d «na. and "'bcr neces^ pub,rwtu '^ r :^; tl the taxation on the people of the countrj, in 1886, ia 3J ots. leia per head than it was in 1878. The hon. gentleman will, perhaps, olaiui that it was from the changed condition of the money market that this was largely duo. I find from a statement published by Mr. Glffen, statistician to the English Board of Trade, the rates of interest and the average rates of discount charged by the Bank of England iD quinquennial periods, from 1875 to 1879, the lowest rate of discount was 2 per cent, and the highest 6#. The average between those two years wasSf^; the average between 1830 and 1884 was 3^^, and the lowest was about a per cent. The highest in the five years was 6|f. In January, 1885, it was 4 per cent. ; in March, 3J; in May, 3 on May Uth, 2J ; June, 2 ; November 12th, 3 per cent. The hon. gentleman wijl see by this that from 1876 upwards the rates of discount in the Bank of England ranged from 2 to 6 per cent., and is very little less now. I have here a statement prepared by the Financial Agents at the time that Sir Leonard negotiated hia loan, showing that the Canadian loan was more approved, that it commanded a higher rate upon the English market, than those of Victoria, Queens- land, New Zealand and South Australia. The importance of standing well with the money markets ofJBngland cannot be over-estimated. It can only be seen when we look at the results. If we are able to go to the money market of England and place a loan at par, if we can sell a hundred dollar bond for $100 in cash, it is a great deal bettor for us than if we could only be able to bring back $88, or something ^ereabouts, as the hon. gentleman opposite did in 1874. Now, to illustrate the importance of this matter, I desire to call attention to the results. Take the unguaranteed loan of 1874, which was placed upon the market by the hon. gentleman opposite, and the unguaranteed loan of 1876. These two loans amounted to $31,633,333, and the money that he netted for them and brought back to Canada was only »38,064.no, showing . loaa of il -^o «, n-28 per cent. The loan fr .m. *'''^^'*«3, or .boat was for »3I 356 695 T ' °°"'*''^ *» * P« »■"•. i" 1874 and 1876 Z ^ "''"'' "" ^°'f""' '»"''•' .lossofonlVwlso! ' T"°"^ «0,930,65Mh«wing ion. «ent !?„; ;^,1":':° ';'' « ''««™' h^s „» th! . o. 1885 that S.";r:7Tir; p,™? ""' ""• """ for the san,e amoaot, HM«6 666 Th! "T" "'" WM »2,208,329, or lluZ. .' '" '"' *^^ ^'"■"»■• or about J -.(1 "^ • ' "" "" '»««'. »140 443 *>- onr „U: 'lrald"""S Th' "'""'"''^ oeoaaion to borrow money-but I h„ T ^' '"'" Of borrowing .re prett/we, „ er 'LI ?" ""^ reference will be made h„ 7 "' ^ ^"PP"* thoconditionofVhen'L^., r' """'"^"^ '"^^'^ ^ works we havel con^d rlh ''■ '" ""'""^''"■« P"""" yield to the counlv ?"'"''''""' ™«^'""i'wi» whether the eXuure°:-,r "m *''"' *■"> «'"'™' »■"' burden of paZ"t w71 """^ '"^'""^ '° ">«' *"» th« oountrnrdit^Jr """'""" thooonditionof ^^e» u-4 ^»rsir;;:tr;rrr*" "°' Without its ^ rantllZTtf *° "^^ '""' '■"'«^'«^"- i» 1866 emerged from L T '°'°- ^'"' ^"""^ Slates With an enorroiZjLtrrI":'''" """»'»'>' «» »'»«'■ expenditure and in thtir '„ "^^ 7™ *""''" '" ^'"P ■" ""''^ they wont on Ih^ f '^ *" """'■'»'° "" Union. But J- went on, (hey succeeded, and wh«n fhe- ., 23 that war they had a debt of $2,773,000,000, all at high rates of interest. They had a depreciated oarrenoy and their bills were selling that year at not more than 40 or 50 oents on the dollar. But they had preserved the Union : they had a large qaantity of fertile prairie in the newer territories; they had a policy of protection for home indus- tries which gave employment at wages which drew from *11 parts of the world population to them. In fourteen years after they emerged from that struggle their paper money was at par ; they had resumed specie payments and they have gone on reducing their indebtedness, and the burden of that indebtedness and of reducing it is not folt by the people of the United States. And so it is with us. We are just emerging from a great war against the obstacles of nature, a successful, a triumphant war, and we have removed all those obstacles and made our country one; and the same result will follow. We have created public works which will be more important factors in ^nablmg us to redeem our indebtedness than were to the United States the honored graves of the men who fell on their battle-fields. We have for our indebtedness visible public properly to represent it. When we went into Con- federation in 1867 our indebtedness was $75,728,611. On the admission of Prince Edward Island and British Columb. it was increased by the debts of those Provinces and by the allowance to Manitoba, and in 1874 and 1884 additional allowances were made to all the Provinces by the assumption of the debt that was left with Ontario and Quebec. The whole of these increases amount to $27 630 058 making a total indebtedness for that of 1867 and the additions* to the Provinces, $103,358,699. On 30th June the net indebt- edness reached $196,407,693, or a net increase on publio works and expenditures of $93,048,993. This is a pretty largo sum and it involves the payment of a prett- lor^r^ amount for interest ; but, as I have shown, and'as I believe^ uTs not '! I !l>i i; U «»daly barden«,„e, considering the condition of tiae „eopl» « «n event,. „e tr^ol ^ irZ "l^'^'^'^T' on pablio work,, It „!„ ."„ ,? been upended the House that in 187, ol the /, "'^""'°"°=' "^ Budget spe. .. he J^ZJICZlJ^.^^'^'r proposed to increase the publio iml.h, w """"""""K^, and »n,0(,0,000. It wilZLt''"'^ *'"'■'""" Honse that he ask^'patJ: „ ntr "hTr t"' *"' t-e conntr, to the Cent om.OOoJZZX:::^::: .nterestontheaccnmalated indebddness wh ch he h./ V.OW. That snn. of ,3,000,000 would hav^lLme/hi" to have borrowed something ,ik„ ,,5,000,000':* :":„tr w.th0Ht any sinking fund. And it wil also be TnT" remembrance of the House that np to he dav thlb , gentleman took office we had h»/ ^ *"""• pIuBcs. and the addWorto tb "'^ ""-'M"^"""' »«r. that existed at iCti^oTtw/T"" ""'"'* ™'P'"» paid interest oV»! , *°"°« "^^^ ''""''l have At -hi „r ? ! '^ '"■■«' «ponditure for pnblic works At the close of the financial year 187» they went out Z m """^ '"^ "*'=«' but after resnon^ihi T °^°® ^'''* ^^^ ^bic^ they were oT,"^ , ;:"/ -f''"'' " « ^""^'^ "verage in': : -ungS„,i^;r:rti:r " "■"''""'°" -^ ""» ^»'"- 6 J' v^iiviiies ot the two Dartioa vA«^oa^^*^-i l_ ., 25 present Government and hon. gentlemen opposite, I may be permitted to look at the figures for which we are responsible. Mr. CHARLTON. You are responsible for all. ; , Mr. MoLEjLA.N". The hon. gentleman says we are res- ponsible for all. That is a matter which we are willing to discuss on any proper occasion. I may say that the ex- Finance Minister in his first year did not evince any hesita- tion in increasing the indebtedness. I have shown that he came down to the House and asked to be allowed to increase the indebtedness in one year by $11,000,000, more than, I think, had been attempted up to that period The increase of indebtedness from 1867 to 1885, exclusive of the allowances to Provinces, was $93,018,483 y and the hon. gentlemen opposite are accountable for $39,156,104, leaving $53,892,839 as the net increase charge- able to our right hon. leader for the thirteen years of hi* administration, showing an average increase of $4,145,156 as against an average increase of $7,831,220 by hon. gentle- men opposite. The hon. member for North Norfolk (Mr. Charlton) says we are responsible for it all, but he will find that by a comparison of the figures that when he and his friends were in power they increased the debt by $7,83 1,22a a year, while we on this side have, in the thirteen years, only increased it $4,145,156. Perhaps the horn gentleman will say that I should not have deducted from this amount the $27,630,000 allowed to the old and to the new Provinces* But I take that out because the Provinces of Prince Edward Island and British Columbia, when they came i^, had debts upon them, and it was merely a transfer of indebtedness ta the Dominion. The Provinces of Ontario and Quebec hav ingbeen relieved of their indebtedness,all the otherProvincea received a proportionate amount in order to enable them ta meet their local requirements. But while I do not say that wo should be charged for that $27,630,000 which came fr-^m th^ 26 dollar to ODe of the Prn«- 7 ®^ °®^®'' 8*^® * every „„ . „, t „i j' l'/"""?: *» «» ^-""•■' ! Dominion «t We «„T . '*°" '^''*^ *» «" present time. Now Sir t k ^^ **^'^'' *» *J»e on«in., .•-<'' ■ -ennes 'of the oL^^pr;:'^- ■■- ""^« '» "" PnWio debt I93.04S 000 .„!. l * "'""'^ ti" ««.«5o,875. scrtr'"'^'*"''^"'""'-''^ We expended »49 SOI 8fli.,.V ""''* "'^ <'«'". "« i)ominioni;.:f ;o™Tt:Chr;°'' '^ '-^ "^ *"« The next item, Sir 1*70?!!°'' '" *'"' P""'''- t»de,issiniin;f„;d Jt,„h , "~""^ "^ ""y ""«»'- -«. Which .1 rs^;;o:';r;3;MT'''™'^'"«' "monnting to »15,886,000 as avS V. !.''°''°°'"'''''"''' of the public indebtedness iT redemption item in the Pnhl.v a ""^ "'"' *» """""or large House i^:I^L^Zti:''t ' '" f'"''^ '" -'' ^0 thia item that there Zt' "" ' '"" " '^^P""' *» "oen a new manl^iorof inr.! do T " '^ ""^ opinion, bat of party opinion ! ""^ "^P""'" - it -nonnLirzrrr.r'r."'.^"--. ^« Liberal party was to be held in the city of Torooto. That convention was held, and it was spoken of by the organ of the party as being a large and representative convention. I tarn to the Globe of the 16th of September, and I find an editorial headed as follows :— "Young LiberaU-Qettinff fairly down to work-The work .c the day —Resolutions adopted by the convention-Hon. B. Blake elected Hon. President." That article said : "The most sanguine hopes of the young men who originated the Idea of a Convention of Young Liberals from all parts of the ProTince, and who have for the past few months been working to promote the movement throughout the country, were far exceeded yesterday morn- ing as groups after groups of members presenied themselves at the doors of Shaftesbury Hall to attend the convention. The observer could not fail to notice the alert, active bearing of the delegates, and their general look of keen intelligence. It may be said without offen- Biveness toward any other gathering that there never before has been in Toronto or probably in the Dominion an assemblage pervaded by » more thoroughly Canadian air. While there was plenty of life, there was little boisterousness, and while the utmost good humour and courtesy prevailed, there was manifested a most business-like intoler- ance of anything that seemed to tend toward sectionalism, hobby- nding, or the indulgence in fads of any kind. All appeared to fully realise that they were not here for mere amusement or child's play, but to discuss soberly and conscientiously the political sitaation of the country." " Now, with such an announcement as this, and with the de- Bcription of such an assemblage as this, I think it but right that its doings should receive some consideration at the hands of the country and of myself on this occasion. On the following day the same paper said : " The young Liberal Convention resumed session at 9 o'clock this morning, the newly elected president, Mr. A. P. Mclntyre. in the chair. ^ousday.'^'''"'^"°°*''*^*°'^ *^' attendance larger than the pre- In the Gbbe of the preceding day, the names of a large number of gentlemen are given. I do not know many of them, but I happen to know the pre<.idflnt, Mr. MoJnt.vro and I am sure he is not engaged in anything like hobby' 'liiHii iiiiiiiii! 28 Sr 'fid'rf.'' '''' ' '''- '' ''-'' -- -ions w«S^Sa":osr:i:::;X;°J "'T^ ^'- --^^'^^ on Wednes..^ The attendance wa^ We a„dth„-^^ '°'''^ ''^^^ ^^^hed it to be exceptionaUy gold the order, „1.k '?™««°»»"ve ; the speakinjf the most faatMbu 'could no obi to 11^; ''"' '^-P'^^ed such aa Of discnssion was maintained CrhU^Mor"''^'"^"**''^^'""^ down after those in their favor had hp"'^ i^^ ^ '''™ °°'^ '^°**'* anj of the speakers mIgJt be o"* "^ - ' • ^ ^°'''^'' """'^ and feeling of the me^ fng, they -tm Z^l T ''' ^^"^^*^ «^'>«'»«'^* attention to the close and whi^« T '^ P*"'°' *"•* courteous treated with perfect Uklssth'/w "'""'''''' *°' ""«™'><^«» ^«'e - ;^aken the^orce oftseT; ^^ZZ ^^^^^ ^^ ^^^ taken, and'thJflk elrd aHty witTwHT ^f "'^^' '""^ ^^'^^ -«'« were acquiesced io.anra full vlt mi^J '^' *' ^" *' P«««^^'^' concessions agreed upon. There was littrol?*"^ soundly Liberal programme to ride hobbies ; "1 ' " "° ''^'''''''''' ' "^ ««"led determination You see that on the first day it was announced that no ho hes were to be ridden, and that at the close it was slated that no hobbiea had been ridden '^VnltZt-f:^^^^^^^^^^^^ or personal " business meeting, and was ^00^. f '' T°' ^° '^'''''' " w«« a bu.lness.like sty?;. ' accordingly conducted in a practical, • wouirbSYbatd^o^^^^^ ^"'^'^^ <^^ coterie whatever neither stultffy nor coLp omirLTh"''^ ^'^ ''°'^^^'^«'>- -0"1<1 of its -mberLpprrdTorbXp^nrZ^^^^^^^^ -i-^^^ behevod to be indispensable ifL.. . • I ^^^^ *^** majority «.a«.oo ..d suMdea, if ,. did „o. ..r^^^TtCZX^S^ "" ^^iJ^^V^V'"' '"""""'"'^ °^""" """"-"on wore .re .like. Thej mv to dT»^«™ ^-* °°'' °'" "Pi'»«»^» W«« ripen ,. q«irLt™'^.arir„Y f'"!" "' ""'' "'"<'''"■. !=»' " i-.ia — rt. i/AKuuKAjfD, fresident.'* » It To this the president of the con vention replied : Now Mr. Speaker, I have read one of these headings in ^h,ch It was declared that the Hon. E. Blake, the leader of hi8 party was elected honorary president of that organi. «at.on. I find that the hon. gentleman accepted the hono and accepted the platform that was laid down there, and he took occasion to announce that in his celebrated speech at London. On that occasion Mr. Blake said : " I thank you, from the bottom of my heart I thank vnn fn, ♦k and cordiality of your reception. I know it to b« fL k' *]" ''""'^^ deserts of mine, but it ia another and molt marke/e/^^^^^^^ *°^ ^''' continuous, abidine and nnhm^nA^A^ T maricea expression of that been -bowired on'me b^ttj^^^^^^^^^^^ which has specially during those dafk and t y " timeT wLhh' "*°^ ''"''' *°* took the lead. Will vou allow mZ Tu- ^^ '**^® P^^'*"* since I congratulate the Lil^aronrro^tta^fir^^^^^^ playing, and particularly to express mv Z t/VL ^ ^ *'* """^ **"" and successful organisatL of ryoTai libera! Z"'"? ''°°'"°* . grateful thanks for the honor doneTe by my e : tl^n trtH^^*"' ""^ presidency of their great conrention, a g^heriuTfro ° l u°°'*'^ ticipate the best results." gatnermg from which I an- Thehonleaderof tbe Opposition there accepts the presi dency of the organisation fornaed at that convention 2 «.oep.s the platforna adopted, I was under the TmC Twhth :' ": ™' ""' "■"' «Pi°'on apon the 3; to which I have referred among the whole people of tW» Dominion. I find that one of the resolutions-and I „nl ' ^eal with the one bearing on the matter I have now ^ hand-reads thus: now in 30 of the Provincial Legislatures, because they have the power of expend. Ing monej without the responsibllitj of imposlag taxes ; also, the sub- sidy system as carried out in Canada causes the bulk of the revenues to be collected by indirect taxation, whereas direct taxation is more just and more economical. Therefore, resolved that this convention approves of such a change in the British North America Act as shall provide that each Province of the Confederation shall collect as well aa exp3nd its own revenues." Now, this is so important a proposition that I thought it desirable to call the attention of the House to the matter at this stage of my review of the accounts. We are now pay- ing out to the several Provinces about $4,000,000. The platform adopted by the Oppoaition gentlemen, and accepted by the leader of the Opposition, declares that it is unwise and unjust that we should continue the payment of these subsidies, and that the Provincial Legislatures should be taught to resort to direct taxation in order to raise the revenues they require, so that they may be taught economy in their expenditure. Now, I have no doubt this will greatly relieve hon. gentlemen opposite, should they ever come to power. The hon. member for South Huron art of the revenue due to the present year has been anticipated ■ 40 and gone to the credit of 1885. Coming to the Estimate* Bubmitted to the House for 1886.87 1 desire to say that, so far as I have found it possible, I have estimated in full for every service we are called upon to meet, except, perhaps^ public works, and there are so many claims, bo many de* mands, and apparently with good reason, made upon that department, that, until the House rises, it is almost impossible to say how much will be required for that ser- vice. My hon. colleague, the Minister of Public Works, is BO anxious to meet the wishes of all the representatives of the people that it is diflaoalt to say when his demands upon the Treasury will be all in. Taking the several items in detail I have a few observations to offer. The main increase arises in the public debt service. The increase in the in- terest on the putlic debt is estimated at $118,636, this arising mainly from the increased deposits in the savings banks. There has been during the past year considerable discussion in the public press respecting the rate of interest which the Government should pay to savings bank depositors^ and it seems to be a question which is growing in importance, and one upon which I think the hon. gentlemen opposite have taken the view that we should reduce the interest upon deposits in the savings banks. The Government, having considered this question, does not come to that conclusion. We believe it is in the interest of the country at large that every encouragement should be given to the middle class, to the laboring class, to practice habits of economy and save their earnings as much as possible; and for this reason we are reluctant to reduce the rate and we think it would be an injustice to them to reduce the rate we are at present paying to such depositors. We have examined into the prac^ tioe in other countries, and find that in England a highei- rate of interest is paid by the Government than is paid in the .1 i--_i fi.i.^/.«.,«+«*T Wa find that in several of commeroiiii uauiinu; ■^u'oijju.rx^-j: ■■ ' the States^the States •f New York, Maine and Massachusetts 41 — 6 per cent, is allowed to ba paid ; and taking all these matters into consideration, and considering mainly the fact that it is desirable to encourage the working classes to b& economical and thrifty in their habits, we have refased to come down to Parliament with a proposition to reduce the rate of interest in the savings banks. More especially is this the case when we are paying for the money we have borrowed abroad, for a large portion of the public debt of the country, a higher rate than we are paying to depositor d in the savings banks. 1 have had a statement prepared showing the rates of interest we are paying upon the loans we have effected since 1874, and although the nominal rate is 4 per cent., yet when we take into account the charges made by the agents in London, also the discount made upon those loans, it appears we are actually paying for the money we have obtained in England and abroad, a higher rate of interest than we are paying to our own depositors in the savings banks. Taking the several loans, from 18*74 to 1886, I find we have borrowed $ 124,796,598. Upon that sum there was a discount, to which I referred in the early part of my observations to the House, of $5,965,040. So while we have borrowed $124,000,000 odd, and we owe for that and are paying interest upon it, and some time we shall have to pay the capital, we did not receive that much money* nearly $6,000,000 less, so that the annual interest on the gross amount of those loans is $4,991,863. Then take one-half of I per cent, added as commission for paying interest, and it makes the total amount per annum to interest, $5,016,823, and an actuarial calculation shows that includ- ing charges the rate which the Government pays on these loans is nearly 4 J per cent. Now, the returnb of the work- ing of the post office savings banks show that the cost, including interest and expenses, is 4^q- per cent., and a statement has been prepared of the amount in the savings banks under the control of the Finance Department, which 'M, ■ «^ 42 shows that the espenses and interest amoant to 4'22 per cent.; the average of both is 416, or -^-^ of 1 per cent, less than is paid to the foreign lender. The Government thinks that it is unfair, while we are paying that rate of interest abroad, that we Bhoald not pay the same rate of interest to the working c'..:.:>;c:' of our own country, and encourage them, as I said :' '" to habits of thrift and economy, and to lay by somecuing for a rniny day. It is a question which hds been raised as to whether the amount received from any one depositor may not be decreased — and some changes are likely to be proposed — but otherwise we propose to let the matter remain as it is^ Sinking fund shows an addition of 8504,407, chiefly made up by the restoration of the sinking fund for the 4 per cent, reduced loan whieh was omitted last year. I need not weary the House by going over all the particulars respecting the small increases which are proposed to be made in the various ranches. Every care and economy has been exercised in order to reduce them as low as possible. I said in the outset that we had estimated largely for those services which usually oome down to the House as Supplementary Estimates, and which include larger amounts than appear in the original Estimates. The Indian vote is increased to $lt0,539, and I expect that will fully cover all the wants of that service. The mounted police vote has also been increased. There is no large increase in the collection of revenue service. It will be noticed that there is a reduction in the superannua- tion service of 010,000. This arises from the fact that the superannuation service was rather overestimated last year. This is an item which I think deserves some explanation to the House and to the country, because I find that the working of the Superannuation Act has been largely misrepresented— I do not mean to say intentionally misrepresented, but misunderstood. Hon, gentlemen looking at the Public Accounts, see as the receipts 48 from the superannuation fund perhaps $50,000 ; they see that the charge is made out, say, $200 lOO, and they suppose, as a matter of course, that the superannuation is a tax upon the country of $160,000 a year. I submitted to the House, on the opening of Parliament, a statement of the operation of the Act during the past year, showing that taking the superannuations made for the year 1836, there has been a saving of $5,691 ; that is, that the superannuation allowance amounts to $18,360, the gratuities to different persons $2,668, and the new annual appointments $15 "763 making a total of $36,692, .vhilst the salaries pre' viously received by the persons superannuated amounted to $42,384, showing a saving by the operation of the Act of $5,691. But next year and in the other accounts, the particulars of this statement will drop out, and, as I said, all a person will see in examining the operations of the Act will be that we receive from the civil service $50,000, say, and we pay out $200,000, or that there has been a loss in the operation of $150,000. Now, this has not been the case from the passing of the Act up to the present time. If you examine all the appointments that have been made at lower salaries and if you ascertain all the vacancies by persons who have been superannuated and their offices not filled, you will find that there has been a large saving to the country through the operation of that Act. In 1880 the Finance Department went through the whole service and made a calculation showing the branches in which there had bedn a saving and those in which there had been a loss to the country from the operations of the Act. The Department of Finance showed a saving of $48,648.73; the Department of Agri- culture, $18,000; the Inland Revenue Department, $12,570; the Department of Public Works, $21,000; the Department of Marine and Fisheries, $30,000; Secretary of State, #5,482; Department of the Interior, $6,893; Customs, ji !h ' i I 44 %ni,Z9B. In the Dopartmont of Kail ways and Canals thero had been a loss up to that time of $23,025; Militia and Defence, $3,725; Post Office, «6,000, oi- a gross saving of ♦330,183, from which deduct the loss in the three depart- ments, and you have still a saving of •3l'7,325, through the operation of the Superannuation Aot up to that time. I have had in my own department the work continued down to the present date, and I find that for the inside service only the operations show a still favorable result to the country in a saving of over $40,000, and that through the continuous operation of that Act a large saving will be effected to the country in general. Then, Sir, I come to other savings which I propose to effect this year, but I need not weary the House by going through them all. The total result of my estimates is before the House, show- ing them to be $33,124,550. Now, I come to the other side of the account— the estimated receipts for the years 1886-87. I do not propose-I do not think it necessary— to make any very great change in the tariff in order to make up that sum, and in order to set something aside to meet the deficit which has arisen from the disturbance of trade and from the troubles we have experienced in the North-West during the past year. My chief alterations will be changes from ad valorem to specific duties where I find it practicable or advisable to do so. There has been during the past two years a large decline in the price of foreign goods as well as in the price of home productions ; but in consequence of depression in other countries— greater depression, I must say, than exists in our own country— there has been a con- siderable slaughter of goods in other countries, and a great many difficulties have arisen in the Custom house in arriving at the proper values for entry. With specifio- duties that difficulty would be largely obviated ; and I have in several cases to propose to the House changes in that direction, in order to overcome that 45 diffioalty and to lessen the inducement to parties abroad to send in goods with false invoices. Sach change as I propose to moke other than this will be upon articles which I think may fairly be considered as luxuries, but they will not affect the workingmen, and, therefore, will not give hon. gentlemen opposite any great inducement to increase their cry that we are grinding the poor man down by the burdens of our taxation. I may then, Sir, read to the House the changes that I propose to ask the House to make ; and when we are in committee, that will, perhaps, be the better time to give the detailed information respecting the different items : Almonds, shelled, a epeoific duty of 6 cents per lb. Almonds, not shelled, and nuts of all kinds not elsewhere specified, a specific duty of 3 cents per lb. Baking powder, a specific duty of e cents per lb. Boxes, oases and writing desks, fancy and ornamental, and fancy manufactures of bone, shelJ, horn and irory, also dolls and toys of all kinds and materials; ornaments of alabaster, spar, terra cotU oi com- position, statuettes, beads and bead ornaments, 30 per cent, ad valorem. These articles which I have enumerated may be called luxuries, and yet they stood on our tariff at a lower por- , centage than many other articles that entered into more general use, and I ask the House to increase the duty on this description of goods. Bolts, nuts, washers and rivets of iron or steel, a specific duty of 1 «ent. per lb. and 16 per cent, ad valorem. Blueing— Lauadry blueing of all kinds, 25 per cent, ad valorem. Cider, a specific duty of 10 cents per Imperial gallon. This was ated formerly at 20 per cent., which amounted to about 3 cents per gallon. Cordage -Manilla and sisal cordage of all kinds, a specific duty of li cents per lb. and 10 per cent, ad valorem, Dessicated cocoanut, sweetened or not, a specific duty of 6 cents par lb. Feathers, ostrich and vulture, undressed, 20 per cent, ad valorem. Feathers, ostrich and vulture, dressed, 30 per cent, ad valorem. Fruit, dried, viz. : Raisins, a specific duty of 1 cent per lb., and 10 per cent, ad valorem. Fruit, dried, viz. ; Uurrants, dates, figs, prunes, and all other dried iruits not elsewhere specified, a specific duty of 1 cent per 11. iiij! 46 Fruit, green, viz. : Blaokberriei, gaoMborriea, raspberries, and straw- berries, a specific duty of 4 cents per lb , the weight of the package to be included in the weij[ht for duty. Peaches, a specific daty of I cent per lb , the weight ot the package to be included in the weight for duty. Gimps, cords, braids, ribbons and bindings, when Imported by ba^ manufactarers for use In their factories, 16 per cent, ai valorem. Oas, water and soil pipes of cast iron, 30 per cent, ad valorem. Gloves and mitts of all kinds, 30 per cent, ai valorem. Hair cloth of all kinds, 30 per cent, ad valorem. Harness and saddlery of every description and parts of the same, 30 per cent, ad valorem. Laces, braids, fringes, embroideries, cords, tassels and bracelets, also braids, chains or cards of hair, 30 per cent, ad valorem. Lead pipe and lead shot, a specific duty of li cents per lb. Oleomargarine, butterine or other substitute for butter, a specific duty of 10 cents per lb. We propose also to put an Excise duty of 8 cents per lb. upon that article manufactured in Canada. Printed or dyed cotton fabrics not elsewhere specified, 27} per cent. ad valorem. Spirits and strong waters, not having been sweetened or mixed with any article so that the degree of strength thereof cannot be ascertained by Syke's hydrometer, for every Imperial gallon of the strength of proof of such hydrometer, and so in proportion for any greater or less strength than the strength of proof, and for every greater or less quantity than a gallon, viz. : Qenova gin, mm, whiskey, alcohol or spirits of wine and unenumerated, unmixed and not sweetened spirits by whatever name called, a specific duty of $1.75 per Imperial gallon. Old Tom gin, a specific duty of $1.90 per Imperial gallon. This was left at $1.32^ cents last year. Spirits and strong waters, mixed with any ingredients, and although thereby coming under the denomination of proprietary medi- cines, tinctures, essenceg, extracts or any other denomination, including medicinal elixirs and fluid extracts, whether in bu'k or bottle, not else- where specified, shall be nevertheless deemed to be spirits or strong waters, and subject to duty as such, a specific duty of $3 per Imperial gallon and 30 per cent, ad valorem. So iar as liquors are concerned the increase has been upon Old Tom, otherwise explanatory of the resolutions of last year and the year before, C^1^-_> ^.fo- anil nai.fr>mai1 anlritfl in hltt.1(>a Ar flftskB. nOt Wei(thintt more than 4 ounces each, SO per cent, ad valorem. 47 Cologne watar and perfumed .piriU, In bottle,. fl..k. or oth« pack- agei, weighing more than 4 ounces each, a ipecific dntv „*%, Imperial gallon, and 40 per cent, ai valor^in ^ °* ** P*' Tubing, wrought Iron, plain, 2 inches la diameter or nn,i., and threaded or not, 30 per cak ai valorem **"' '°"P''"* ceaT"iXl""'' '*^^"'"' '' °°'' '' ^^'^ "^ «— . ^0 per Whips of all kinds, 30 per cent, ad valcrem. Wire fencing, buckthorn, strip and other simiUp fi.n«in« * . flteel, a specific duty of 1 J cents per lb * °^ *'°° " Yeastcakesand compressed yeast, in packages or balk of 1 lb and ov«, a specific duty of6 cents per lb. «""« or i id. and orer, ^ Jeast cakes, in packages of less than 1 lb., . specific duty of 8 cents. Portland and Roman cements to be daonoH »:«k -u *u Bpecifio rates as now provided. '" °**'" ""«"*' »* Now, I come to the question of sugar. Thoee who have studied the returns of past years will see that the revenue from sugar has been gradually declining. We did not impose 60 large a duty as was imposed in 1877-78. The revenue derived from sugar, under the tariff of 1677 78 was «2 39 per 100 lbs. Under the new tariff the revenue, in 1881, was $1.80. In 1882, the value of sugar had slightly declined, and the ad valorem duty gave a less return 'ZtVof ' " ''''' '' ^'^ ^'''' • '^ ^S«^' «l-50 ; and iJ 1885, «l.27 per 100 lbs. We propose to ask the House first 10 change the mode of testing the value of sugar. There has been a good deal of discussion upon this question with refiners of the different Provinces, some of whom have made complaints that favor has been shown t» refiners in other Provinces which were not shown to themselves. I do not find that there has been any great ground for this complaint. I think hat the officers of Customs have discharged their duty very feithfully, and when a comparison of the returns is made, it 18 seen that there is very little, an almost imperceptible difference, in the returns from the various refineries through- out the country. In the United States, all sugars are sold "J «-ae poiarisoop© iest, the refiners of thit country test their 48 Mgart, price them, and sell them by the polarisoopo test; and 1 think, from the satiflfaotion this has given abroad and from the contentions that arise under the color test, It iB advisable to aslc the House to adpt the polarisoope test, and to name a speoiflo duty for all refining sugars, which will be an average of the rates received between 18-^5 and 1881. What, then, I propose, is to ask the House to impose these duties : On Bugar. melado, concentrated melado, concentrated cane juice, conwnti;t«d molMses. concentrated beet-root juice and concrete, when rpTrte d direct from the country of growth and production for refining pZows only, not over No. 13 Dutch standard In color, and not testing oyerBrrenty degree, by the polariscope, a specific duty of 1 cent per IbTand foreye?y additional degree or fraction of a degree shown by polariBCope ttst 3i cents per 100 lbs. additional. I may explain that the American tariff imposes a duty of $1 40 per 100 lbs. for the test of Beventyfive degrees, and charges 4 cents for every degree above seventy five. What we have taken is a little over three-fourths of the American tariff, reducing everything about the same pro- portion, BO as to charge a trifle over three-fourths of the American duty. On BUKar not for refining purposes, not over No. 13 Dutch Btandard in color ^hen imported direct from the country of growth and produc- tU a .'plcific duty of 1 cent per lb. and 30 per cent ad valorem on the value tiereoffree-on-board at the last pon of shipment. n„.n«u .rs above No. 13 Dutch standard 'in color, and on refined sulr all-kindB grades or standards. Ij cents per lb., and 35 per cent, sugar ot ail K ' » ^^ ff^^g^^-board at the last port ot shipment. "'o^alUug^rr-^^^^^^^^^^ trv of Iw^Jand production, there shall be levied and collected an additional duty ot% per cent, of the whole duty so otherwise payable thereon. That is, in the case of indirect shipments, the duty shall first be ascertained under the rates named, and then 1^ per cent of the duty shall be added for that. We have always had in our tariff that distinction between direct and mdi- rect shipments. 49 Prorlded that whea hay cargo of sngar for refiulng purpoMi ii found to grade, to the extent of not orerlS percent of the whole, abore No. 13, Dutch itandard in color, the whole of laid cargo may be admitted to entry by polariicope teit, a> abore prorlded for refiaiair parpoaet only. Syrupi, cace juic*, rflflned syrup, ingar houie syrup or sugar house molasses, syrup of sugar, ayrup of molassci or sorghum, whether im- ported direct or not, a specific duty of 1 cent per lb. and 30 per cent, ad ^alortm. Molassoss, other, when imported direct, without transhipment, and from the country of growth aad prodaclion, 16 per cent, ad valorem. Molasses?, when not so imported, 20 per cent, ad valorem. The value upon which the ai«a/m .71 duty shall oe levieu and col- iected upon all the above named syrups and molasses shall be the value thereof free-onboard at the last port of shipment. Provided that molassess, when Imported for or received into any re- finery or sugar factory, or to be used for any other purpose than actual consumption, shall be subject to, and there shall be levied and collected thereon, an additional duty of 6 cents per Imperial gallon. Provided that the change In the rates of duty on sugars and molasses ahall apply only to Importations arriving in Odnada on and after the Slsr. day of March, instant, and not to such articles warehoused p;ior to that date* Sugar candy, brown or white, and confectionery, a specific duty of U cents per pound and a5 per cent, ad valorem. Then, I propose lo amend sohedale « B," the list of goods which are entitled to be entered free of daty, by fcubstitut- ing the following provisions for the following item3 :— Articles for the personal use of consuls general' who are natives or citizens of the country they represent and who arc not engaged in anv other business or profession. ' It has been found that ., great many consuls have been appointed, and that several of them are engaged in other business and claim to have articles for the'r use entered free of duty. This is to explain the provision, and to con- fine it to consols general, who are natives or citizens of tiie country they represent, and not engaged in any business. Borax, in lump; grease, the refuse of animal fatfiron and steel, old and scrap, but nothing shall be deemed scrap iron or steel, except waste _r re.!.s„ i.on vx bscci luai aas Dg6Q iu aoluai use, and fit only to be re-manufactured ; sumac, crude. 50 Tiaen we strike out from the free list, iron sand or globules aod dry patty for polishing granite. These are articles that are being manafactured now in our own country. Philosophical instrumeats and apparatus, including globes, &o. These have been on the free list for a great many years, and all the schools have been compelled to go abroad for such articles, and it hag been found that many of the globes and maps imported have been specially designed for the country in which they are manufactured, and that special prominence is given to that country upon them. For a year or two, in Toronto, and I think in Montreal also, there have been gentlemen engaged in the manufacture of globes and philosophical instruments for schools, and, with the sanction of the superintendents of schools in Ontario— at least some of them from whom I have heard—it is proposed to encourage the manufacture, so that there may be a supply of those instruments within reasonable reach, instead of the trouble of sending abroad for them being necessary. Then, it is proposed to amend schedule " D " relating to prohi- bited articles, by striking out the item relating to copy- right works, and substituting the following in lieu thereof, namely : — Reprints of Canadian copyright works, and reprints of British copy- right works which have been also copyrighted in Canada. There is another resolution declaring that it is expedi- ent to provide for an Excise duty of eight cents a pound on oleomargarine, butterine, or other substitute for butter, manufactured in Canada. These, so far, are the propositions which we have tonight to submit to the House, Now, assuming that these are assented to by the House, I think that we may reasonably expect that the revenue during the year 1886-87 will be as follows : [ may say, first, that even with the full benefit of any changes that I have j.ioposed here,, i am not counting upon any very large i norease to the Castom» revenue of the country during 1886-87. We have had, or 61 we aro to have, the Canadian Pacific Eailway opened through to British Colambia. Hon. gentlemen know by the returns that the amoantof duties collected in British Colambia and Manitoba has been out of proportion to the ordinary collections in other parts of the country of similar population, because they have been shut out from connection with the manufacturers of the country, and I believe that, with the opening of the road, a great deal of the trade which hitherto went from British Columbia to the United States and from Manitoba also to the United States will be given to our own manufacturers in the Dominion. Therefore, I do not anticipate so largo a revenue froaa those two Pro- vinces as i.e have had in the past. My estimate then for the year 1886-87 will be :-Ffom Customs, $20 200 000 • from Excise, $7,000,000; from post office, railways, inter! est and miscellaneous services, 87,300,000; making a total of $34,500,000 ; against which I have shown an estimated expenditure of $33,124,550, leaving, as the estimates now stand, a surplus of $1,375,450. This, of course, when my hon.friend the Minister of Public Works has had his 8ay,so far as he can have it, will probably be reduced, still I hope that the public service will not call for a very large additional expenditure this year, and that the amount of the anti- cipated surplus for 1886-87 will not be very largely reduced by Supplementary Estimates. It may be that the hon gentleman who will follow me will think I have over' estimated this matter, and that I am over-sanguine as to the amount that I shall receive during the coming year of 1886-87. I suppose that, if he speaks by the experience of the past, he will say I am. He might tell u, that he entered upon his administration full of hope, as I am; that he had great expectations of revenue, and that when he proposed to increase the duties bv threa mnrinnj ofdollars, there was no doubt in his mind that he would receive that addition to his revenue; but we know 1^1 S2 the result ; wo know that time^ and ti.o policy that he was purfeuiog, frustrated his hopes and wrought his political ruin for that period. I know that this may, perhaps, be the impreflsion on his mind now, and he may, perhaps, bring as the proof from the records that all this occurred, but I believe that the policy this Government is pursuing will lead to better results than the policy which the hon. gentleman and his party pursued from 1874 to 1878. it is true that we have not had in the past year or two that commercial activity that we had in 1881 and 1882, but there has been great caution on the part of our merchants, in view of the great reduction which has been going on in the prices of various goods throughout the world ; and there has been a very large reduction, more especially in free trade coun- tries, where the depression was most strong. I am eare, Mr. Speaker, that if we compare the position of the Dominion of Canada in its trado with the condition of any other country, more particularly free trade countries we will find that the depression has not affected us so seriously as it has some of those other countries. We have overy indication from the country at large that there is eound commercial life, and that there is ability to enlarge commercial operations in the country, and I rely upon that. The revenue to be derived from a people, depends a good deal upon the ability of the people to purchase goods, and upon their iiaclination to do so. I know, Mr. Speaker, that the inclination generally exists and the ability to do so we may enquire into. Com- mencing with the agricultural class, I think wo have every reason to believe that the farmers of this country are in a better position to-day than they have been for years— at all events, in a very much better condition than they were during the period from 1874 to 1878. We live beside the greatest agricultural people in 53 the world perhaps, and they are a people who, notwith- Btanding that they have a large enrplus to export, will per- mit no article of agricultural produce to enter their, coun- tiy free. That was the condition of things from 18'74 to 1878, and yet while that condition of things existed, the pohcy that was pursued by the Government of this country was to admit all agricultural produce free. Mr. Speaker, I do not wonder that this had a depressing effect upon the farmers of thi. country, and I think, Sir, that effect upon the agricultural community was evinced in the fact that so large a quantity of American farm produce came into this country free, and wa.. consumed by our people, instead of being supplied by our own farmers. Sir, we hare changed that policy. We have said to Canadian farm- ers, that just such measure as the American Government has boon meting out and does mete out to you, we will mete ou. to the American farmer. We will endeavor to shut out the large importation that has been going on of American farm produce to feed the people of this Dominion who have so much fertile soil and so many willing hands to' cultivate that soil and to produce all that is required for the sustenance of their own people. But we said more. We said to the Canadian farmer : We will inaugurate such a trade policy as will give employment to a large number of con- eumers whom you will have to feed and support from your farms, and we will increase your markets not only by stopping foreign produce, but by multiplying the number of consumers of your own farm produce. Under this changed policy the condition of the farmer seems to have rapidly improved. The importa- tion of American agricultural farm produce has diminished, although our home consumption has increased largely! This matter has been discussed by the organ of the third Ba»'tv i" il^i" X^^~. — J - 4. f^-y, >-. i^,= xivuac, nuu an auempiiias been made to show that the National Policy has been a failure, because there is 64 Btill a considerable importation of breadstuflfs into tbe country. Well, Mr. Speaker, it is true there has been some considerable importation, but my position is this : that under our National Policy we have largely reduced the importR. tion of American breadstuflfs, and we have also stimulated the Canadian farmer to greater activity ; that he has supplied what has fallen short in importation, and he has largely increased his exports abroad. The increased activity which has been given to all branches of industry seems to have affected as well the farming popula- tion, and they are able to supply the three or four million dollars worth of American farm produce that used to come ID, and we have largely increased our exports abroad. Now, Mr. Speaker, in 1875 there was entered $12,389,900 worth of American breadstuffs; in ISTS there was imported 611,114,000 worth; in 1877, $13,853,000 worth; in 1878, $13,452,000 worth, a total in those four years ^ f $50,813,900 worth. We exported $24,000,000 odd, leaving, as consumed by the people of this country, $26,707,126 worth, or $6,676,000 worth per year. Now, Sir, under the present policy, without giving the sum for each year, the total imports for six years, beginning with 1880, have been $18,784,000, or $3,130,600 a year, as against $6,676,000 before the National Policy was inaugurated. That is, we have imported per year less than one-half as much as was imported per year before the adoption of the National Policy. I may state that the article of Indian corn was mentioned by the organ of the party, and it was shown that it has been taxed to the large amount of 7^ cents per bushel. Well, Mr. Speaker, it is true that under this policy we did tax Indian corn 7J cents a bushel; but a large portion of the imports of Indian corn was for the purpose of being distilled into whiskey. In 1880 there were 739,000 bushels imported; 1881, 754,000 bushels and so on; in the six years there were 5.368.123 bushels 65 imported, paying 7^ cents per bushel duty, all, for the purpose of being distilled into whiskey and not for the purpose of being consumed as breadatuflfs. But I have shown by statistics that we have shut out by our policy more than $3,000,000 worth a year of breadstuff:* coming in from the United States, and I will make a comparison showing the exports of farm produce. In 1875 we shipped agricultural exports, including breadstuffs and products of animals, to the value of over $29,953,000 ; 1875, $ 10,000,000 j 1877, $28,000,000; 1878, $32,000,000; 1879, $33,000,000;' or a total of $165,580,000 in those years. Since the intro. duotion of the National Policy the exports have been as follows :-1881, $42,000,000; 1882, $51,000,000; 1883, $43,000 000; 1884, $35,000,000; 1885, $39,000,000— $212,000,00a in all. From this sum deduct $165,000,000 exports in the same number of years without the National Policy, and you have left an increased export of $46,858,833 or $9,371,7ii6 a year. Our farmers have exported annually, on an average, upwards of $9,000,000 in excess of what they did before, and they have supplied the home market to the value of $3,500,000 of American produce shut out, making over $13,000,000 more than was exported under the policy of hon. gentlemen opposite. Mr. CHARLTON. Where is the home market ? Mr. McLBLAN. Why, I have just explained to the hon. gentleman, as well as 1 could, that wo have given the home market to Canadian farmers to the extent of $3,545,000 a year; and that is supposing there had been no increase of population during that period. But it will not be pretended that there has not been more supplied with the increase of population in the manufacturing districts since 1881, and that the home market has not been larger than it was before, the $3,545,000 in addition. A word more in regard to the home market. In the first six months of this year, vuu im - ^ — J portatiOii of furm produce and provisions for the use 66 of the people has declined over $3,000,000 as compared with the first six months of last year. So the House will Bee that year by year oar farmers have been steadily taking possession of the home market as well as increasing their exports abroad, and the encouragement afforded them has given thorn greater activity and life, and they do not now " leave the oxen idle in the stall and the plowshare rusting in the field/' The hon. gentleman opposite does not seem to be quite satisfied that our farmers have been benefited by^ the operation of our policy ; and when an hon. ge:.tleman, who was elccff d for his intelligence as a representative of the people, claims not to see in what way the farmers have been benefited, I think there may possibly be farmers wha have not yet seen clearly in what way they have been benefited. Some hon. MEMBERS. Hear, hear. Mr.,MoLELAN. Some hon. members say " hear, hear."^ I suppose you could put it more clearly to the farmers. The hon. gentleman knows Toronto, a city with a population of 100,000. Sappose you could draw a cordon of American Custom house officers round that city and Pay to the farmers of Ontario: You shall not take in a pound of butter or any agricultural produce to feed that population of 100,000^ but they shall be fed entirely by American farmers. If you could do that in practice it would bring the matter home to- Ontario farmers, and I think the hon. gentleman himself would not ask how they were at present benefited, and the farmers would see how they had lost by such a transaction^ by being shut out from supplying the city. Suppose hon. gentlemen opposite should come into power and should bring their policy into operation, and all the mon who are now- employed in manufactures, and who were not employed in 1878 under their policy, by which great importations of slaughtered goods were sent in from the United States, had. to shut up and go to the United States. My predecessor bronght down last year a statemont showing that by statis- tics there had been established, under the National Policy, factories giving employment to 34,000 hands. The proba* bilities are that under such a change of policy as I hav» indicated almost the whole of those people would be driven out of the country into the United States to manufacture the goods that might ba wanted by the pepolo who would be left behind. Mr. LANDEEKIN. More than that number have been driven out. Mr. McLELAN. The hon. gentleman says that more than that number have been driven out. But he would not object to driving out 34,000 more, Mr. LANDERKIN. I would. Mr. MoLELAN-and all the people connected with them. Let me carry the supposition further. Suppose that after those people had been in the United States for a time manufacturing for the Canadian people, being fed by American farmers and paying tribute to the American Government, they should say : The products of our toil go over to Canada; we are scattered in different towns; suppose we unite, cross the line and establish ourselves at one central point, and takeover the men who build our houses, and our lawyers, doctors, clergy, wives and children and servants, and make a population of over 100,000 and locate at some place where not a pound oi butter or an article from a Canadian farmer will come, but American farmers will have free entry by market waggon and railway to come and go and supply us with everything we need, and the Canadian farmer shall have no intercourse with us. Then the hon. gentleman himself and all the Canadian farmers would see the eflfect of that operation in practice, and I think they would say: It is better that we shmilfl haTTA o n^KnT, +i.„*. ™:ii keep those mechanics and their families here and enable 68 our own farmers to supply them with their farm products, and thus find a market for them at home. Mr. Speaker, I have referred, in reply to the hon. gentle- man, to the inorease in the number of wage-earners and to the fact that Sir Leonard Tilley had statistics prepared show* ing the increase in the number of artisans employed in the various factories of this country from 1878 up to the com- mencement of 1884. I have not had the opportunity of con- tinuing that operation, but in our trade returns there is suf- ficient evidence to show that the increase in the number of wage-earners and artisans employed has been enormous from 1878 up to the present time. We have imported more than $10,000,000 worth of machinery since 1878. That machinery was not imported to stand idle. That machinery is now giving employment to large numbers of people in vari- ous portions of the country. We have imported large quan- tities of the raw materials to which I have already referred —cotton, wool, hides, pig-iron, and everything that enters in the manufacture of goods, and all these things prove conclu- sively to me that there is an increased number of people employed, an increased number of wage-earners who are receiving good wages, and who will be able to purchase goods and contribute to the revenues of the country during the year. In everything there is evidence of increased ac- tivity. I read to the House to-night the increase in the post office service. Hon, gentlemen opposite claimed that we would kill out the shipping trade of the country, but there has been a steady increase in the coasting and foreign trade of this country ever since this policy was introduced, all tending to show that the country is progressing favorably, Mr. MITCHELL. Sailing vessels ? Mr. McLELA.N. I will read tho figures to the hon. gen- tleman. The coasting trade in 1884-85 was 15,944,422 tons the foreign trade in ships was 7,644,615 tons. Mr. MITCHELL. Sa ling vessels ? 59 Mr. McLELiN. Sailing vesseU and steamers. Mr. MITCHELL. I am asking about sailing vessels. Mr. MoLBLAN. I have not separated them. I have not learned yet that a steamer cannot carry goods and passen- gers. I think that the steamers carry jiiet as many goods in proportion to their spare tonnage as sailing vessels and deliver them quicker, and I was taking them both together. The foreign tonnage was 7,644,615. Mr. MITCHELL. Foreign tonnage ? Mr. MoLELAN. The coasting and foreign trade to- gether was 23,589.000 tons. In 1878-79 the coasting trade was 12,066,683 tons; the foreign trade 6,000,000 tonp or a total of over 18,000,000 tons. There is an increase in the BIX years of 5,433,804 tons or an average of 905,634 tons a year, Mr. MITCHELL. Foreign tonnage, but not Canadian; that is the point. Mr. McLELAN. I am not speaking of whether we owned more or loss tonnage Mr. MITCHELL. Ah I That is what I want to know. Mr. MoLELAN. I am speaking of this point : that the people of this country, the trade of this country and the wants of this country, employed a larger tonnage by 5,433,804 tons than they did in 1878. Mr. MITCHELL. Yes, but owned by foreigners j there is the point. An hon. MEMBER. It makes no difference. Mr. MITCHELL. It makes a great deal of difference. Mr. McLELAN. I am not aware that foreigners own a very large proportion of the shipping that is engaged in the coasting trade of this country. I am not aware of it, and if the hon. gentlemaa vviii show it lo me, I wiii accept the 60 N'ii figures he will give, but it does not alter the poaition I have taken, that the trade of the coontry requires 6,433,804 tons, and employs that tonnage more than it did in 1878-t9. Then if we come down to railways we find that in 1878-'79 wd had 6,664 miles of railways in operation ; their train mileage was 19,000,000 ; the total passengers carried, 6,4i4,000 ; the number of tons of freight carried, 7,833,000. Now, Sir, in 1885, we have 10,149 miles of railway in opera- tion ; we have a total train mileage of 30,623,000; the total number of passengers carried, 9,672,59?, and the total num. ber of tons of freight carried, 14,679,949 ; or an increase in all those items of over 50 percent., all tending to show that there is an increased trade, an increased activity in business throughout the country. Therefore Sir, I think that I am right in the position I take, that the business of the country is more active and better. Then we have the fact as shown by our bank returns that we have $16,000,000 more of bank and Dominion notes in circulation than there were in 1878; that the deposits in the chartered banks in 1885 were $106,000,000; in 1878, 872,000,000; or an increase of $34,000,000. We have the fact that the savings banks deposits have increased from $8,497,000 to $35,280,000 up to last night, an increase in deposits of $26,783,000, But, Mr. Speaker, we have an increased number of men engaged in business, and we have also an increased number engaged in business without failing as they did in 1878. The number of traders, in 1885, was 70,043, with failures an^ounting to $8,743,000. In 1878 we had 56,347 traders, with failures amounting to $26,875,000. There is an increase of 13,696 in the number of people engaged in trade through- out the country, and there is a decrease of $18,132,000 in the amount of the failures, and I take those facts as the best indication of the condition of the country, that larger numbers are engaged in trade, and engaged without loss to themselves and to the count-y at large. The returns for 61 the first period of this year show still more favorablr fn respect to the failuroa. The return L IZ ^ the fir.t six weeks of 18.6 was 192 fail. ^ ^"' 90K • ^. ' ^^^ lailures, as airainat 236 m th« .amo period of 1885, «„d 887 in ml- 2 that comparing with 1878, .ho deoroaao i, very greatia' the n„a.b.r, and th. do.^ea,e ia the ..nount of liabUit "T. ometh-ogenormoua. I w., very deeply i.^roZZZ the xpl.„.t,on wbioh .he hon. „e™ber for BTthwel. ^Mr from 874 to 1878. Ho p„t the whole oa.e la a „„tah.T Ho ea,d that " the merohanta failed for want of oustome™ ! .nd I suppose .here were no customers because the"e"« «o employment forth people, and no money amoTJbe Thcefore the merchant stood idle at his counter, w!mo, mvam for customers that did not come-that ;u"d »„! come-because they had no money and no empToyl: and bet::':'"' "" ""'^"''''^ '«" "P™ tholrchan ; and the offlo.al assignee walked the land like a rJ,' lence at noonday. Sir I ..art from „ ^ "'" .L . ' '""" ""^ point— idleness of the people, want of employment, no factories in opi" .d consequently no customers for the merchant-IdThe™ follow a bankrupt merchant and an empty treaeurr 7 T 'T I'' ""■" P<""'-«»>ployment 'fo'r ZpTople money for ,he people, money taken by the people to (he m.r' chant, .he merchant busy, and a full treasury. You ^1 f™t one point, and you reach the one conclu^iorabsoC;™: .art from the other point, and you roach .he other con ,u r f *" T"'"''- ^'''" ^»» ""^ '"Ploymont f°r e people, you have not only a busy merchant and a fulUrla eury but you have above all a contented and happy "^I Dan,el Webster, the great American statesman IpraW; 62 II mu'.UpllGd or extended, the beitei. To diTerjIfy employmeat is to enhance wagea, And, Sir, take this gnat truth, place it on the title page of every book of politicAl economy intended for u^e, put it on erery /armer't almanac ; let it be the head'og of every coluna in every mechanic's magazine. Proclaim it everywhere, and make it a proverb, that where there is work for the hands of men, there will be work tor their teeth. Where there is employment there will be bread. It is a great blessing to the poor to have cheap food ; but greater than that, prior to that, and of atill higher valus, is the blessing of being able to buy food by honest and respectable employment. Employment feeds, clothes and instructs ; employment gives strength, sobriety and morals. Constant employment and well paid lebor produce, in a conntry like ourt, general prosp9rity, content and cheerfulness. Thus h%ppy have we seen the country, thus happy may we long continue to see it." The hon. mombor for South Huron (Sir Richard Cartwright), Bomo time duriDg this Session, told us that the National Policy had been a failure, because there had been large importations in excess of the exports ; and he gave figures by which he made it appear that there had been an excess of $101,762,000 worth of imports over exports. Now, Sir, let me refer to this for a moment. "We were in very peculiar circumstances. Manitoba, the North Wost and Bri- tish Columbia imported largely o* foreign goods, having no facilities for procuring goods of domestic manufacture. If the hon. gentleman will compare the imports into Manitoba, the North-Westand British Columbia from 1874 to 1879 with the imports from 1880 to 1835, he will find that they im- ported in the latter period $45,603,000 worth of foreign goods. If he will take that from our excess of imports over exports for the same period, he will find that it leaves but $56,159,000, or $9,359,833 a year. He will also find that the imports into those districts from 1874 to 1879 were only $18,000,000, which dodnotod from the excess of im- ports over exports, will ja^e $86,000,000; or in that period there was an excess of imports over exports, exclu- sive of Manitoba, the North-West and British Columbia of $17,242,000 ayear, while from 1880 to 1885 there was only an excess of $9,359,000 a year. Bat the hon. gentleman wiU also 63 find, on ez«,nlo.tion o< the trade aad revenue retarns, that a arge proportion of theexoesaof importe over export, in the older Provinces wm raw material for raanofacture or arfclee that ehould come in free. For insunce, there wae ,d .noro.ee in 1885 over 1878 in hide, and horns of |5«3 000 iLrn'r"". """' "' *'•'"*■*""'' '" '»'"«"' '«">^ of $746,000, ,n com an 1 bullion of |2,250,000,and so on, making T "TAl!!"'"'''' ""■' "P"" '" ""»» "■•"»■«. which are free, of »3,630,000i so that the wholeexoess of imports over exports in the older Provinces is disponed of in that way Mr. Speaker, I have detained the House at greater length than I .ntended, or should have done, and I must apologise for It. But an hon. gentleman opposite has said that we have driven more than 40,000 people out of the country ; and I suppose we shall hear the same thing from the hon. gentle- man who is about to address the House on the opposi.e side It .s true Sir, wo have not had in the past that great increase' of numbers that they have had in the United States In the United States, long previous to the taking „f the ast census, they had a policy of protection to home indus- try. They had a policy of giving their people employment UoitJs.T'T" ""'"^ ""'"■' "'"^ i---«-"talth Unuod states from all parU of the world. They had also opened for settlement large tracts of prairie country, and he two pohcos combined helped to increase the popu- lat,on of the United States at a greater rate than L mcrease m the Dominion. But, Sir, if we take the Ameri- can census of 1880 and the Canadian census of 1881. and if we seleo a number of the older States, which offer a fair ground for comparison with the Dominion of Canada, we w,il find we have he.d our own very well. Of cotlrse, .f you go mto the newer States, with attraotione of new territory and prairie soil, you will and a much larger percentage of increase: l.nt «,),.f t . , ,^ ., - make a comparison with the older States. Conneoti- 6i cut, which had 53t,000 inhabitants in 18*71, had 622,683 in 1881. Gonnecticat, Maine, Massaohasetts, New Hampshire, Vermont, Dakota— I put in Dakota as a set-oflf to Manitoba —comparing those States with Prince Edward Island, Nova Scotia, New Brunswick, Ontario, Quebec, Manitoba and firitish Columbia, I find that the American States increased 16*06 and the Dominion of Canada increased IT'OS per cent, in population, according to the last census; so that when we make a proper comparison between the Dominion and the older and more settled por- tions of the United States we find we have more than held our own. Now, the complaint has been made that the National Policy has not done its duty, because times have not been so brisk as they were in 1862-83. But, as I said before, if we compare the position of trade in Canada with the position of other countries— in the United States, and Great Britain, for instance— we will find that our position is better than theirs, and we can gather from this, that but for the National Polioy ruin and bankruptcy would have been upon us. It is in times when there is great depression in surrounding countries, when there are over-production and slaughter in prices of goods in those countries, that we find the protective policy desirable and advantageous, and it has proved itself here highly beneficial in protecting us from the onslaughts which would have been made upon us by foreign manufacturers. I proposed to deal with this question more fully, but I have occupied so large a share of the public time that I cannot go into it as fully as I would wish. I want, however, to give one instance to show how the National Policy is aff'eciiug the wage-earner in this country at present. All that is required for the pro- duction of cheap goods in this country, ia that there fihall be a market for those goods, and t4ie larger the market the cheaper they will be. Our people are as active i»n4 BB intelligent as any others, and when they afe forced 65 abroad, as they have been, they make as good artisans, with a little experience and training, as are to be f )und in the world. All that they require to be fit to manafaoture every- thing required in this country, and to manufacture as cheaply as is manufactured in the United States or elsewhere, is that t'.^y shall have some training, and this they will obtain by our furnishing them with a market for their gooda. Now, the manufacturer or capitalist seeks a fair return for his investment ; he looks into the chances existing for placing the products of his investment ; and the smaller the output he has, the larger percentage he must put upon that output in order to meet the interest upon his capital and the depreciation o" his plant. There is a very familiar illustration of this. You take a blast furnace which requires 830,000 to meet the in- terest upon the capital invested in it and the depre- ciation of the plant. If the output of that furnace be 15,000 tons of pig-iron, of course there must be $2 a ton put upon the iron, in order to pay the interest and the deprecia- tion of the plant. If you increase the output to 20,000 tons, then it only requires 61.50 per ton to pay these charges ; if you increase it to 30,000 tons, you only want $ I a ton upon it, to pay a dividend and you can sell the pig-iron $1 a ton cheaper. If you run the output up to 60,000 tons, all you want is 50 cents a ton, and you have $30,000 raised, and the pig-iron is $1.50 cheaper than it would be with only 15,000 tons of output. The same principle holds good in all the manufactures in which we are engaged. The percentage which must be put upon every yard of cloth which comes from the loom depends upon the output, in order to meet the interest upon the capital and the depreciation of the plant. You must have one of two things. You must either have a large market and a large output or you must have a low rate of wages, and that means a low scale of living and a small sspeuuitufo fcrr the benefit of the farmer. Moreover, 66 you cannot for any considerable length of time, keep men employed at a low rate of wages, while across the border, in the United States, there are larger wages paid and attractions offereJ to draw them to that country. The intention of the National Policy is that we shall give a large market to our own manufacturers. We have not so jarge a market of course as they have in the United States, but we can give a proportionate market, one-tenth or one- twelfth in proportion to the population of the other side. David Wells, the American apostle of free trade, has been often quoted in this House, and he says : '* Wages are labor's share of product, and in every healthy bneiness are ultimately paid out of product. 'No employer of labor can continue for any great length of time to pay high wages unless his product is large. If it is not, and he attempts, it is only a question of time -when his a-ffaira will be wound up by th» sheriff. On the other hand if a high rate of wages is permanently paid in any industry and in any country it is in itself proof positive that the proluct of labor is large, that the laborer is entitled to a generous share of it, and that the employer can afford to give it him." That is what we have been striving to do in this country, and it is what we are accomplishing, when we are giving a larger market to our own manufacturers, and we have the result that a larger, a more generous wage is being paid to the employes than previous to the introduction of this policy. I have not gathered any statistics, except from one company, the Canada Cotton Manufacturing Company, of Cornwall, and I have a comparison in regard to that company between 1878 and 1886, with which I wish to trouble the House in order to show the result of the National Policy in increasing the rate of wages, the number of hands, and not the price of goodsj. Mr. MITCHELL. There is a 35 per cent, duty though. Mr. MoLBLA-N. In 18*78, in the six months from July to December, there were 407 hands employed in that fac- tory, who received $ 17,567 in wages ; the daily amount paid 67 being 8305, and the average paid to each hand per day 76 cents. Times seemed to grow worse, and in the three months from October to December the amount paid to each hand ran down to 72 cents; and in the month of December it ran down to 69 cents. Now I come to 1886, under the operation of the National Policy, and I find that, for the six months ending December, there were 640 hands employed, receiving $91,144 in wages ; the daily amount paid being «584, or an average per day of 91 cents to each hand, against 75 cents in 1878. For the three months from October to December, there were 670 hands employed-the number increases as ^e go on-and the average amount paid was 9i cents. In the last month of the year, 672 hands were employed, and the average amount paid to each was 90 cents. For the six months, the percentage of hands be- tween 1878 and 1835 shows an increase of 57J per cent, the wages paid an increase of 93f per cent., and the amount of daily wages to each hand an increase of 21 per cent. In the three months there was an increase of 66^ percent, in the number of hands employed, of ^8^ per cent in the amount of wages paid, and of 28 per cent, in the amount paid to each hand. In the last m-nth of the year, the increase in average wages was 30 per cent, over that paid in 1878. So you will see from the figures given that the people em- ployed by this company are receiving a greater wage per day than they were in 1878. But the hon. gentleman fays we have a duty of 30 per cent. Mr. MITCHELL. I said 35 per cent. Mr. MoLBLAN. Well, 35 percent. In 1878, the price of standard sheeting, weighing 2-85 yards per lb, cost 10 . .^„, ,2 p„. V5,„.^, uiBuuuiii,, or SO oo ccDis per iu., with the average price of cotton lOf cents. In 1886, that same sheeting, cost 6| cents per yard net, o.- 18-62 cents per lb., against 2636 cts. per lb. in 1878. 6i I 68 Mr. MITCHELL. What did the raw cotton cost ? Mr. McLELAN. It cost 10^ cents in 18t8, and in 1886 it cost 10*56 cents per lb. This shows that, though the hon. gentleman says there is a duty of 35 per cent, consu-^ mors are getting their sheetings now for 42J per cent, less than they paid in 1878, while the raw cotton is not quite 3 per cent, cheaper. That is the result of the operations in that factory, and I am satisfied that it will be shown to be the result all over this country, that men are being em- ployed, that they are recei ring greater wages, and that the output of the factories is given at less cost than it was in 18T8, when people had a narrow market and could not produce as cheaply as now when they have a larger market. This is what we are doing with the National Policy and that is what we intended ; we are giving employment to the people and at better wages, by our protection. It is not the cotton in its raw state that we want to protect, it is not the ore in the moun- tain, nor coal in the mine, it is not the clay in the potter's hands that we want to protect, it is the hands that are forming and fashioning the clay, it is the men who dig the ore from the mine, the men who smelt it in the furnace and the factory, and form and fashion it into the shape wo require to uee ; it is the men and women who are manipula- ting the warp and the woof in the cotton factories,— it is these whom we want to protect, and it is these whom we have protected, as I have shown, and for whom we have secured a higher rate of wages. Therefore, the National Tolicy is no failure, from any point of view you look at it. I have detained the House too long Some hon. MEMBERS. Go on. Mr. MoLELAN, No, I must close, in justice to my hon. friend opposite. I have gone over the Public Accounts, and 1 have shown the position of affairs in 1885. 1 have shown 69 that, taking the year by itself and apait from the troubles in the North- West, we stand very well. I think hon. gen- tletuen will admit that we stand very well, for they never liked the idea ot having a large surplus. I have shown that in 1886 we shall not bo so very bad, and that there is a jus- tifioation for us for putting that extraordinary expenditure which we have had in connection with the North- West to capital account, because during the years that we have administered the Government of the country, we have paid from revenue a large amount into capital account. It is not the custom with other countries in the woild, which have been engaged in wars, to place all the expenditure of those wars on revenue immediately. The United States did not, they could not, they left it to capital account, and it was years before they commenced the reduction of their indebt- edness. It was fourteen years before they returned to specie payments. I have shown, I think, conclusively, that there is no great cause for alarm in the amount of burden that is imposed upon this country for interest at present. I have shown that there was, up to 1885, a less rate of i terest per capita upon this country than existed in 1878, and only 23 cents at the most more than there waa in 1867, when the people were poorer and had not the ability to pay. I have shown that, taking out the extraordi- nary expenditures and those that are not taxation, the increased expenditure from 1867 to 1835 has been compara- tively trifling, a little over $2,00^,000. So, Sir, 1 do not antici- pate that we shall hear very much more of the increased taxation from $13,000,000 up to $34,003,000 or $35,000,000 in eighteen years. Sir, they have first to convince the man who has engaged in the business and the duties in life, and who is expending $35 for an outfit and a suic that ho is doing wrong and ought to go back to the $13 suit, that he had eighteen years ago, when ho was a boy. They will have to convince the merchant who is doing a business of millionB that he is in danger of bankruptcy and ruin fcecauee his experees are larger, bis staif of clerks is larger than they were when he had a little corner shop, and as Carlyle said : " The red herrings and the pipes painfully crossed in the window." Sir, before they can convince the people of this country that we are doing wrong in our expenditure, they will have to persuade the stockholders of the Bank of Montreal to sell out if they wish to avoid bankruptcy and ruin, because the Bank of Montreal, when it started, only expended £400 or £500 a year, whereas they now have established agencies all over the Dominion, and in New York and London, and are expending an enormous fium yeaily in keeping up those agorcies. They will have to persuade the stockholders of the Bank of Montreal that they are in danger of ruin and loss before they can persuade the people of this country that they are in ^danger, hccause there has been necessarily an in- creased expenditure owing to the increased area of this country. Sir, there have been necessary expenditures, because we have had large undertakings which were neces- sary to our very existence, and we have had a great struggle to accomplish this purpose ; but, Sir, we have suc- ceeded, and the liabilities arising out of that have been placed upon us earlier than we anticipated. We entered into an engagement to construct the Canadian Pacific Bail- way, and have it completed in 1891 ; but circumstances made it desirable, in the interest of the country, for this Houee to hasten the completion of that great work. Well, it is almost completed, and, as f have shown the House, the burdens for interest are not unduly pressing upon this'oountry. We have come out of our operations with far less burden p^r head than pressed upon the United States when they came out of their struggle. They are now reducing their Indebtedness. We also have accomplished our purpose, and will 11 take the opportunity of retrieving and improving our position. And, Sir, we shall do that ; we shall rest from our labors, and shall give our attention to reducing the indebtedness of our country, and without unduly taxing the people. Sir, I spoke of the Canadian Pacific Railway. They have accomplished a great work, and we have assisted them. An hon. MEMBER No. Mr. MoLBLAN. Mr. Speaker, I remember the dis- oussion in this House, when it was said that we were giving them everything, and I thiuk the echoes of some of those speakers still linger in the corners of the ceiling, when it was declared that all ^e were doing for them was a gift, «nd that the loan of 835,000,000 which we made to them would never be repaid to the country. It was only last year when they came here and asked that we should allow them to issue bonds to the amount of 835,000,000 and take 820,000,f 00 of this as security for 820,000,000 of our indebt- edness, and put the other 810,000,000 upon lands in the North- West, looking to them only for it, and that we should loan them 85,000,000 more. At that time the gentleman who says " no," perhaps, or some one beside him, said it was only another gift of 85,000,000 to the Canadian Pacific Eailway, and that it would never be returned. Sir, we did, in the interest of the country, adopt that proposition, and 49,000,000 was left upon lands, and they sold their bonds and paid us the 85,000,000. They have gone on and nearly bronght to completion that great work. But, Sir, we know that there are a great many things to be done in order to make that work a complete success. The termini of that road have been spoken of as being at Liverpool and Hong Kong, and it is desirable, in the interest of this country, that they should be enabled to make that com- munication between Liverpool and the eastern countries. 72 They It is difficult us to do it because nearljr all the money wo have raised from that $15,000,000 is- exhausted in our undertaking; you now hold a mortgage upon all our lands, and we are unable to raise any money upon them. It will be known to hon. gentlemen that last year great pressure was brought to boar upon members of the House that we should give up that lien upon the whole of the lands and take a certain portion of the lands, leaving the rest free for the company to raise money upon. They come again and ask us to do the same thing. They represent that a great expenditure is necessary to make the proper connections east and west snd efficiently equip the road, and they ask us to take a certain portion of that land as payment for the lien we hold upon the land, and upon the land only, and leave them to deal with the reat for their own benefit. Well, Mr. Speaker, we have consideiel that mat- ter. We have weighed it carefully, aoJ we have thought that—having aided aod assiiSted the Canadian Pacific Eail- way Company to accomplish so much, to obtain a standing and footing in the money markets of the world, and to be recognised as a great and powerful company, that has accomplished a work of Imperial importance, <'aat it can well stand alone, can well work out its own destiny and accomplish its own purposes. And we have thought it to be in the interests of that company and in the interests of the country at large 'f we were to remove the lien that extends over the whole of the Canadian Pacific Kailway lands and take a certain portion which we conbider of the value of $9,000,000. We have said to> the Canadian Pacific Railway Company : Gentlemen, this is the position of things. Now that you are strong and powerful, able to walk alone, now that you have shown to the world the importance of this great undertaking, let us close all accounts, let us make a full and complete settlement. You take your lands and 73 raise what money you require to meet yoar purposes and we will take a portion of those lands and hold them and dispose of them for the purpose of meeting the balance of the loan after paying 920,000,000 in cash^ And, Mr. Speaker, I am able to announce to the House that arrangements have been made by which the com* pany agree to accomplish that purpose and to pay n» $20,000,000 in cash, one-half in May and one half on or before 1st July, and enable U3 to close all accounts with the Canadian Pacific Eailway Company and receive our $20,000,000 that we may provide for oar floating indebtedness and have spare cash in the Treasury and not be under the necessity of increasing our liabil- ities. We were told time and again that the money and aid we were giving to that company -vere gifts^ and would prove an entire loss to the country. But we believed otherwise, and the result has proved we were right in placing faith in that work and in those who managed it. When we receive that mbney we shall be able to pay off all that sum of $14,000,000 of floating debt, and be able to turn our attention to the older Provinces. The House and the country know that a large portion of the time and atten< tion of the Government has been given to the North- West and the Canadian Pacific Eailway, perhaps to the neglect of some of the older Provinces, and we think it is desirable in the interests of the older Provinces that the attention of the Government should be given to them, and that the Canadian Pacific Railway now being on its feet should work out its own destiny. We have advanced so far, and at the earliest possible day I shall submit for the approval of the House a proposition to carry out this undertaking and enable us to settle all accounts with the Canadian Pacific Railway Company, and to receive the money that is repre- sented by the $20,000,000 of bonds which the Government n hoi 1. I think taking the whole position we have oaase for con:^ratulation. ^Ve have cause for congratulation that wo have done so much and not imposed more burdens upon this COG 'try, and that wg have gone through with our part of the undertaking and not suflfered more inconvenience than we have donr . >*[ , v , all deeply regret the condition of affairs duriug the ^dm season ; we deeply regret the outbreak in the North-West; we regret the loss of life that was ocoationed by it; but if we are to believe the woi-ds of hon. gentlemen opposite even that has do le us good. The House will rekjinber, and will remember with admiration, the speech which the hon. gentleman opposite made in the absence of his leader— the speech which he made when he came out from the shadow of party- ism and spoke as a man and a Canadian . He said : " Sir, people respect those whom they find to be able to fight for their own land and to defend their own country. Oar conduct has been watched and gorutinised on both sides of the Atlantic, and there is no doubt whatever in my mind-r say it fraukly-that we stand before the nations of the world in a bettt position to-day than we did three or four months ago on that single score." Even that occurrence, the hon. gentleman says, has done us good. Yes, we came back from that fight lamenting the death of those who fell in the defence of their country; but we came back without a permanent wound or disfigure- ment, or without being dismembered; we came back wearing no empty sleeve, but with both our good arms tried and strengthened and skilled to carry forward the banner of our country and to work out a grand destiny for ourselves among the nations of the earth. Mr. Speaker, I beg to move that the House resolve itself into Committee of Ways and Means on the following resolutions :— 1. Retolved, That it is expedient to provide that the following rates of duty shall be assessed and collected on each of the articles hereinafter named, and to repeal all Acts or parts of Acts now in force, in so far as they provide for assessing and collecting any different rates of duty than the rates hereby provided, or which are inconsistent therewith :— t5 I. 2. 3. 4. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. Almonda, shelled, a ipeoific dutj of n cent! per lb. Almondi, oot shelled, and nuts of all kinds not elsewhere sptcifled, a specific dutv of 3 centa per lb. Baking powder, a specific iatj of 6 cent« per lb. Boxes, oases and writing desks, fancj nod ornamental, and fancy manufactures of bone, shell, horn and ivorj, also dolls and tojt of all kinds and materials, ornaments of alabaster, spar, terra cotta or composition, stataetf >, beads and bead ornamentsi 30 per cent, ad valorem. Bolts, nuts, washers and rivets of iron or steel, a specific duty of I cent i-er lb. anl 16 per cent, ad valorem. Blnelng— Laundry blceing of all kindii, 25 per cent, ad valorem. Cider, a specific Aivj of 10 cents per Imperial gal'on. Cordage— Manilla and sisal cordage of all kinds, i specific duty of 11 cents per lb. and 10 per cent, ad valonm. Desiccated cocoanut, Eweetcned or not, a Epecifio duty of 6 centi per lb. Feathers, ostrich and Tulture, undressed, 2 ner cent, ad valorem. Feathers, ostricb and vulture, dressed, 30 per cent, adva'^irem. Frnlt, di ed, viz. :— Raisins, a specific duty of 1 cent per lb. and 10 per cent, ad valorem. Fruit, dried, viz. :— C urrants, dates, figa, prunes, and all other dried fruits not elsewhere specified, pecific duty of 1 cent per lb. Fruit, gi en, via. :— Blackberries, gooseberries, ■raspberries aad strawberries, a specific duty o*"4 cents per lb , the weight of the package to be included iu the weight for duty. Peaches, a specific duty of 1 cent per lb., the weight of the package to be included i i the weight for duty. Qim^n, cor i, braids, ribbons and bindings, when imported by hat manufacturers for use in their factories, 15 per cent, ad valorem. Qas, water and soil pipet •( cast iron, 30 per cent, ad valorem. Gloves and mitts of all kinds, 30 per cent, a alorem. Hair cloth of all kinds, 30 per cent, ad valor i. Harness and saddlery of every description, l parts of the same, 30 per cent, ad valorem. Lacesi braida, frinsjes, embroideries, cords, tassels and bracelets ; Also raids, chains or cords of hair, "^0 per cent, ad valorem. Lead j pe aad l«ad shot, a specific duty jf 1^ cents per lb. Oleomargarine, butterine or ouier substitute for butter, a ii'ieci fie duty of 10 cents per lb. Printed or dyed cotton fabrics, not else «rhe:e specified, 27^ per cent, ad valorem. Spirits andet ng waters, not havine been sweetened or mixed wth any article so that the degree < f strength thereof cannot be 76 asceruined by Syken' hydrometer, for every Imperial gallon of the strength of proof of such hydrometer, and ao in proportion for any greater or less strength than the «trength of proof, and for every greater or less quantity than a gallon, viz : Geneva gin, rum, whiskey, alcohol or spirits of wine, and unenumerated, un- mixed and not iweetened spirits, by whatever name called, a ■pecific duty of $1.76 per Imperial gallon. 26. Old Tom giu, a specific duty of $1.90 per Imperial galloa. 27. Spirits and strong waters, mixed with any i gredient or ingre- dienta, and although thereby coming under the denomination of proprietary medicines, tinctures, essencej, extracts or any other denomination, including medicinal elixirs and fluid extracts, whether in bulk or bottle, not elsewhere specified, shall be never- theless deemed to be spirits or strong waters, and subject to duty as such, a specific duly of $2 per Imperial gallon and 30 per cent, ad valorem. 28. Cologne water and perfumed spirits in bottles or flasks, not weigh- ing more than 4 ounces each, 50 per cent, ad valorem. 29. Cologne water and perfumed spirits in bottles, flasks or other pack- ages, weighing more lli^n 4 ounceseach, a specific duty of $3 per Imperial gallon, and 40 per cent, ad valorem. 30. Tubing, wrought iron, plain, 2 inches in diameter or under, codpUd and threaded, or not, 30 per cent, ad valorem. 31. Whips of all kinds, 30 per cent, ad valorem. 32. Wire, iron or steel, galvanised or not, 16 gauge and coarser, 20 per cent, ad valorem. 33. Wire-fencing, buckthorn, strip and other similar feacing wire of iron or steel, a specific duty of l^ cents per lb. 34. Yeast cakes aud compressed yeast in packages or bulk, of 1 lb. and over, a specific duty of 6 cents per lb. Yeast cakes in packages of less than 1 lb., a specific duty of Scents per lb. Portland and Roman cement to be clatsed with all other cementat specific rates as now provided. 37. On sugar, melado, concern rated melado, concentrated canejuice, concentrated molasses, concentrated beet root juice and concrete, when imported direct from the country of growth and produc- tion, for refining purposes orily, not over No .3 Dutch standard in color, and not testing over 70 degrees by the polariscope test, a specific duty of 1 cent per lb., and for every additional degree or fraction of a degree shown by polari3Cop8 test, 3J cents per 100 lbs. adlitional. 88. On sugar not for refiniog purposes, not over No. 13 Dutch standard in color, when imported direct from the country of growth and production, a specific duty of i cent per lb , and aO per cent, ad 35 36 39. 77 valorem on the value thereof free oa board at the last port of sbipnien^. ' °'.!l'"*r"V.^r; ^°- '^ ^""''^ '*'""'"'' '» *^«'o''"d on refined sugar of all kind., gradea or atandarda, 3 J cent, per lb , and 36 per cent aii;a/«)r«mon the value thereof free on board at the la.t port of ship rent. "«'.««i. 40. On all augars not imported direct without trani.hipment from the country of growth and production, there ahall be levied and collected an additional duty of 7i per cent, of the whole duty ao olherwiae payable thereon. Xo^urllTlT ""f'" *? """^^ °^'"^*' ''' ''^""'"^ P"'P°-« '« found to grade to the extent of not over 16 per cent, of the whole, above No. 3 Dutch Standard in color, the whole of aald car.o may be admuted to enter by pol.rlacope teat aa above provided for refining purpoaea only. «•"«« 41. Syrupa, cane juice, refined .yrup, sugar house syrup of sugar hoaae molasaes, syrup of angar, syrup of moIa38es or sorghum, whether imported direct or not-a specific duty of 1 cent per lb. and .30 per ceni. ad valorem. 42. Molasses, other, when imported direct without tranahipment and from the country of growth and production-l6 per cent, ad vilorem. ^ * 43 Molasses when not so imported~20 per cent ad valorem. ■ The value upon which the ad valorem duty .hall be levied and col- ected upon all the above-named syrups and molasses shall be the value thereof free on board at the last port of shipment. 44. Provided that molasses, when imported for or received into any refinery or sugar factory, or to be used for any other purpose . th»n actual consumption, shall be subject to, and there shall be levied and collected thereon, an additional duty of 6 cents per Imperial gallon. ^ sLd^^fM ^-'"'''''''""'""'^'''^ '"^ °'^"*^* '^ »«d after the thlt Tl ' '"' °'' '' '"''' '''''''' ^'^rekons.i prior to 46. Sugar candy, brown or white, and confectionery, a specific duty of ] J cents per lb. and 35 per cent, ad valorem. 9. Resolved, That it is expedient to amend Schedule"B," oeing the list of goods Which are entitled to entry free of duty when imp'teV o Canada, by substituting the following provisions for the corresponding Items now contained therein :— ^puniing 1. Articles for the personal use of Consuls General who are natives or citizens of the country they represent and who are not en eacred in An v nf Via.. >,„<.,■ /. . "*• - „ -- — _, _. — . .yitusucBs ur iiruiession. 2. Borax, in lump. ^#>*ii 78 3. Qrease, the refuse of animal fat. 4. IroQ and steel, old and scrap, bat nothing sball be deeme I scrap iron or steel except waste or r