r- THE / MERCIER GOVERNMENT BEFORE THE ELECTORS. DISASTROUS REGIME. 1890. ,*. ■'S»*: ^W THE MERCIER GOVERNMENT BEFORE THE ELECTORS A DISASTROUS REGIME. FINANCIAL POLICIES. The Province Menaced by a Direct Tax. The financial policj'^ of the Merciei- Government has ': been disastrous. Firstly, b}^ the extravagant increase of expenses. Secondly, by the alarming increase of the public debt. Thirdly, by the awkward negotiation of the $3,500,000 loan. ^ Fourthly, by the numerous scandals committed by the ministry. Violated Promises. | All provincial electors will remember that during the whole time in which they w^ere in opposition, Mr. Mercier and his political friends had bound themselves in the most formal manner to practice the most rigorous economy, should they come into power. Mr. Mercier and his political friends had also promised not to augment the public debt, but rather to diminish it, because they had found it too heavy a burden. Shortly after the last general elections, the 26th June, 1886, Mr. Mercier published his programme, which con- tained the two following articles, in accordance with the finoncial policy that he promised to put into practice : — 5° The immediate adoption of energetic and pi-actical measures to ameliorate the financial situation of the pro- vince, and to prevent direct taxation. 6*^ Economy of the public revenues and the stoppage of immigration and administration expenses that are not actually indispensable to the public service ; to increase so much more the colonisation grants ; a reform in the system of ministerial accountability that has given rise to so many abuses. These solemn promises, these engagements of the public honor, the Mercier Governmeni have outrageously violated. It has repudiated his programme with a cyni- cism that has exasperated every honest man. Instead of diminishing public expenses, he has increased them in a really extraordinary manner. Instead of pi-acticing economy, they have committed themselves to the most shameful waste. It has augmented the taxes, and has squandered the product of them with the most scanda- lous extravagance. The Increase of Expenses. In 1885-86, the last year for which it is responsible, the Boss Government had expended only 83,032,60^.25. What did the Mercier Government do ? Let us first see the increase in expenses admitted by 3[r. Shehyn, the Provincial Treasurer. At page 11 of the Public Accounts of the year end- ing 30th June, 1888, and at page 6 of his speech on the budget, at the sitting of 15th February, 1889, Mr. Shehyn admits that the Mercier Government had raised the ordi- nary expenses for the year 1887-88 to the sum of $3,365,- 032.36. ■'^' '-Si^^'' Let us compare this sum with that expended in 1885-86 by the Ross Government. Expen8es of the Mercier Government in 1887-88, admitted by Mr^ Shehyn $3,365,032 36 ±.xpenses of the Ross Government 3,032,607 25 Increase of the INIercier Government $322 425 11 The Mercier Government are then obliged to admit that during its first year of administration, for which only it is responsible, it had increased the expenses $332- 425. It has therefore violated its promises of economy from the time of its year of power. The increase of expenses was in reality much more considerable than that admitted by the Government. To diminish the amount. Mr. Shehyn has adopted the dan- gerous plan of dividing the actual ordinary expenses into ordinary expenses chargeable to capital. A large por- tion of these pretended special expenses should be count- ed as ordinary expenses. The only expenses which the Conservatives carried to the account of capital in the Pro- vince are the subsidies to railroads, the cost of construc- tion of public buildings and the court house at Quebec. It is thus that for the year 1887-88, Mr. Shehyn has carried to the account of special expenses, the following, which are, in reality, butordinary expenses chargeable to revenue. McGill Normal School «; o kaa ^f^ Court house at Arthabaska '.V.V "* 5 ooo no Court house at Montreal 21 4^2 83 Heating appliances, court houses, new districts . . . 6 000 00 Circuit Court, Kamouraska t; 000 00 Iron bridges in the municipalities 25,000 00 Protestant Insane Asylum, Montreal 10 000 00 Codification of the laws 45 000 00 Exploration in Dorchester, L^vis and other "coun- ties •••... ...........,,,., ^ ^ ^ lA (\(\o An Crown Lands Department 55 844 93 Augmentation 187,767 76 '■ -lww?';;■;■'x■■';■ Mr. Shehyn has himself fui-nished the pi-oof that he was wrong in subtracting the preceding sums from ordi- nary expenses, for in table B of expenses of the province since 1867, which he was annexed to the Public Accounts 1887-88, and of 1888-89, he has included in the ordinary expenses all the disbursements of the same category as the preceding one. In this manner, for example, in the table B, Mr. Shehyn has included in ordinaiy expenses $28,032, expended in 1883-84 under the title, " Tempo- rary Accommodation of the Legislature;" $9,972.66 in 1880-81, and $15,920.80 in 1881-82 for " Eemoval furni- ture, and installation in the new Parliament Buildings j in 1875-76, $16,000.00 for the purchase of the property on which are built the Government Offices at Montreal ; 1872-73, $35,566.67 and $15,000.00 in 1873-74 for the purchase of and, from the Fishing and Coal Company, Gasp^; in 1883-84, $15,000 for the new Drill Hall, Que- bec," etc., etc. All these expenses are as much " special " as those enumerated above, and which Mr. Shehyn does not include in ordinary expenses, in order to diminish the amount of expenses for which the Mercier Government is respon- sible. To exactly understand the figures of expenses of 1887- 88, we must add the sum of $187,767.00 to those ex- penses admitted by the Government. The following is the addition : — Expenses admitted by the Mercier Government...! 3,36.5.032 36 To add : iSpecial expenses chargeable to revenue... 187,767 67 Actual expenses of 1887-88 $ 3,552,800 12 This is the exact amount of expenses chargeable to revenue, incurred in 1887-88 by the Mercier Governmen . Now let us compare it with the expenses of the Boss Government in 1885-86 : — 1 ■■; : Expenditure of the ^lercier Government in 1885-8(5 $ 3,552.800 12 Expenditure of the Ross Government ir 1885-86.. 3,032,607 25 ;. , Increase $ 520,192 87 The Mercier government is therefore responsible for having increased the expenditure $520,192.00 in 1887-88, and this in flagrant violation of its promises of economy. At the session of 1889, after having obtained by offi- cial documents undeniable proofs of the extravagance of the Mercier Government, the Opposition severely criti- cised, as it merited, the financial policy of the Ministry, and on 9th March, 1889, Mr. Desjardins, deputy from Montmorenci, proposed the following motion of non-con- fidence against the Mercier Government : "That all the words after 'that,' to the end of the motion, should be erased, and that they should be re- placed by the following : " This House is prepared to vote the subsidies to Her Majesty for the demands of the public service in this province, but it regrets to state that, compaied with the disbursements made during the term of 1885-86 for the branches of the public service, hei-eafter enumerated, the expenditure for the term 1887-88 by the present Government for the same purposes have been increased in an alarming manner for the future of the finances of the Province, as it appears by the following official figures extracted from the Public Accounts of 1885-86 and 1887-88. Interest of the debt, redemption expenses of adminis- tration 1887-88 $ 1,103,710 94 do do 1885-86.. 977,760 32 Increase 125,950 62 Legislation 1887-88 228,994 88 do 1885-86 181,987 75 Increase 47,007 13 .Civil government 1887-88 208,677 61 do do 1885-86.... 183*675 41 Increase 25,002 20 J 8 Administration of justice 1 887-88 $ 438,755 10 of the official affirraation made in the Speech from the Throne, to the effect that the hope expressed on the subject of a considerable sur- plus for last year (1887-88) were realized, and that the ordinary expenditures were made with all possible economy. " 2. Against the assertion of the Treasurer to the effect that there is a surplus of the regular ordinary receipts of the year upon the ordinary expenses for the service 1887-88, when, in fact, there is a considerable deficit caused by the ordinary annual expenditures. "3. Against the impj-ovidence of the Government, which has not yet suggested any sufficient and effica- cious means to put an end to deficits, to establish a true economic policy, and provide for the paj^ment of the floating debt which, by the legislation of the session 1888, according to subsidies to railways, and by the in- crease of the oi'dinary expenditure under the present Ministry, was raised to more than four millions two hundred thousand dollars the first of January, 1881). " 4. Against the system inaugurated by the Ministry, to carry to capital account expenditures which are really ordinary disbursements of the public service of the Pro- vince, and which, for the service ot 1887-88, amounts to $187,767.76, because this system is of a character to lead the House and the public into error on the true state of the financial afiairs of the Province, in permitting the Treasurer to show a surplus in the ordinary annual operations of the Treasuiy, when, in reality, there was a deficit, and because it is not a good policy, and would be dangerous to the public credit of the Province to bor- row every year for most of the expenditure; inscribed in the budget under the titles of special expenditures, these expenses being payable out of the annual revenue. " 5. Against the disposition that has been made of the last loan of three and a half million dollars ; this loan destined for the extinction of the obligations for the floating debt, according to the calculations of the Treas- urer, and enumerated in the preamble to chapter 2, 50 Vict., having been for a considerable amount em- ployed in the payment of subsidies to railways, author- ized by chapter 91, 51-52 Vict. (1888), which still 12 leaves due on the floating debt a balance unpaid which, according to the Government, existed at the date Slat Jan- uary, 1887, ofmore than one million and a half dollars." The following is the vote on this motion : Yeas. — MevSsrs. Ueauchamp, Blanchet, Casgrain, Desjardins, Duplessis, Flynn, Martin (Bonaventure), Nantel, Owens, Picard, Spencer and Tonrigny. Nays. — Messrs. Basinet, Bernatchez, Bisson, Bourbonnais, ('ameron,Cardin, Dechene (L'Islet), DeCirosbois, I)umais. Forest, Gacrnon, Gladu, Lafontaine, Laliberte, Lemieux. Legris, Lussier, McShane, Martin (Rimouski),Mercier, Morin, Murphy, I*elletier, Pilon, Rinfret, Robidoux, Rocheleau, Rochon, Shehyn, Sylvestre, Tessier, Trudel, and Turcotte. The majority preferred to sustain the Government than to defend the public interest by their vote. The New Parltament BuiLbiNos. The Mei'cier Government disbursed extravagantly in all the branches of the public service the most easily controllable. It is thus that in 1887-88 they doubled the cost of maintaining the new public buildings at Quebec, by augmenting the expenses for this purpose fi'om $28,- 112.60 to $5G,566.40. The 9th Ma>'ch, 1889, Mr. Beauchamp, seconded by Mr. Lapointe, pi-oposed the following amendment, cen- suring the Government for this increase in expenses (page 318, .lournals of the Legislative Assembly, 1889) : '• That all the words after * that ' to the end of the motion be erased and replaced by the following: "This House is prepared to vote Her Majesty the subsidies required for the public service in this Province, but it regrets that during the session of 1887-88 the l)resent Government expended the sum of $50,566.40 for the new Parliament buildings, entered under this title in the chapter of public accounts of 1887-87, intituled, ' Rents, Assurances, Repairs, etc.. of public buildings,* while the old Government expended but $28,112,60 for the same purpose during the service of 1885-36. "This House believes it to bo its duty to censure the 13 Government for this' increase in the expenses of the Province. ^ '^^ "1 Liie The following is the vote on this amendment: De^hSe"rSet^^I)T^r^H' .^^^^bonnais Cameron, Cardin, i^ecnene (1j isiet), De Grosbois, Dumais, Duhamel Gntmnn Croyette, Leraieux Lussier, MeShane. Mar n (RimSi ' The partisans of the Ministry again voted against the public interests. THE SESSION OF 1890. The Increase of Expenditure More and More Alarming. It is especially during the last session that may be seen to what point the Mercier Government has forced the extravagance and increase of expenditure. This time Mr. Shehyn was obliged to admit, at page 13 of the Public Accounts for the year ending 30th June, 1889, that the Government had expended $3,543,618.64. Let us compare this sum with the last year of the Eoss Government: — Expenditure of the Mercier Government in 1888-89 admitted by the Treasurer $3 54 Aaministration of justice 1885-86 363,'746 48 Increase 84,997 84 Police 1888-89 18861 07 Police 1885-86. 1 41090 00 Increase 4,771 07 Works and public buildings 1888-89 116,164 23 Works and public buildings 1885-86 82,584 40 Increase 33,579 83 Crown Lands Department 1888-89 201,200 00 Crown Lands Department 1885-86 130,000 00 Increase 71,200 00 Payments by officers of the revenue 1888-89 48,635 11 Payments by officers of the revenue 1885-86 26,531 79 Increase 22,103 32 Special expenditure chargeable to revenue 1888-89. 236,996 57 Special expenditure chargeable to revenue 1885-86. 20,030 40 Increase 216,966 17 The following is the vote: YEAS.--Me88rs. Baldwin, Beauchamp, Desjardins, Duplessis, England, Faucher de St. Maurice, Flynn, Lapointe, Leblanc, Martin, Mcintosh, Nantel, Owens, Picard, Poupore, Spencer, and Tourigny— 17. Nays.— Messrs. Basinet, Bernatchez, Bisson, Bourbonnais, Cameron, Cardin, Champagne, D^chSne (del'Islet), De Grosbois, Dostaler, Duhamel, Forest, (ioyette, Lafontaine, Laliberi^, Le- mieux, Legris, Lussier, McShane, Mercier, Morin, Murphy, Pel- letier, Pilon, Khodes, Rinfret, Robidoux, Rocheleau, Shehvn, Tessier (Portneuf),Tessier(Rimouski),Trudel, and Turcotte— 33. For the year 1889-90, the Mercier Government caused its majority to vote expenditure imputable to revenue 2 18 to the amount of $3,784,405. Even this sum will not be sufficient, and the Government will expend, at least. $3,900,000 in 1889-90. That is to say, that they will in- crease expenditures by $868,000.00 compared to those of the Eoss Government in 1885-86. The Expenditure of 1890-91. The Mercier Government by its partisans, voted for the year 1890-91, for the estimated expenditure iithe budget an amount of $3,425,625 To this amount, must be added the pretended special expenditure chargeable to re- venue which they voted amounting to. . 283,976 Total $3,709,621 The sum of $3,709,621 would not even be sufficient for defraying all the extravagances of the Government if Mr. Mercier remained in power the coming year. To judge from the expenditure of the Mercier Government since it has been in power, it is certain that the expendi- ture in 1890-91 will be at least $3,950,000. Let us compare this sum with that of 1885-86. Expenditure of the Mercier Government 1890-91 . . $ 3,950 GOD Expenditure of the Ross Government 3,032,607 Increase $ 917,393 The Mercier Government will then have in- creased the expenditure more than nine hundred thousand dollars. If the people would prevent this squandering they must vote against Mr. Mer- cier and his candidates. Mr. Mercier and partisans refUse to diminish the expenditure. At the last session, the Opposition made all possible efforts to put an end to the extravagances of the Govern- 19 ment. It offered several motions to reduce the expendi- ture, but Mr. Mercier and his partisans always re- fused. The 20th February, 1890, the Government asked the House to vote a suplementary sum of $50,832.20 for the general expenses of the Minister of Crown Lands. The Honorable Mr. Flynn proposed as an amendment : "That this House does not now concur in this resolu- tion (general expenses, ministry of Crown Lands $50,- 382.20) : " But that it be resolved that this House declares: " lo. That the Grovernment had caused to be voted for this same service the sum of $86,000 for the year 1889- 90, and that from the state of the receipts and disburse- ments to 31st December last, produced before this House, all this amount had already been expended ; " 2o. That the Government admits by the mouth of the Honorable Commissioner of Crown Lands, and by the statement that he communicated to the House, that a por- tion, namely: a sum of $13,363.53 of the $50,832.20 that the Government demand by the resolution in question, was already paid by means of the above mentioned credit of $86,000 for the current year ; "And that in consequence, this House sees with alarm this enormous increase in the expenses of the Crown Lands Department, under this head particularly, and protests against this irregular and unjustifiable proposi- tion of the Govei'nment to vote a second time sums of money for items of expenditure which have already been provided for by means of a credit allowed." The following is the vote : Ybas — Messrs. Baldwin, Casgrain, Desjardins, Duplessis, Eng- land, Faucher de St. Maurice, Flynn, Hall, Lapointe, Leblanc, Martin, Macintosh, Nantel, Owens, Poupore, Spencer and Tou- rigny — 17. Nays — Messrs- Basinet, Bisson, Boyer, Cameron, Cardin, Champagne, David, De Grosbois, Dostaler, Dumais, Duhamel, Forest, Gagnon, Gladu, Goyette, Lafontaine, Lalibert^, Lemieux, Legris, Lussier, McShane, Mercier, Morin, Murphjr, Pelletier, Pilon, Rinfret, Robidonx, Rocheleau, Shehyn, Tessier (of Port- neuf), Tessier (of Rimouski) and Trudel— 33. 20 (See page 811 of Proct^s-Verbal of Legislative Assem- bly, sitting of 20th February 1890.) Electors ought to reject the members who voted against the amendment of Hon. Mr. Flynn. Mr. Mercier and hie partisanb vote for the in* crea::^e of the debts, of expenses and taxes. The Opposition was fully detei-mined to tight to the end against the extravagant policy of the Government. After having proved in I'eply to the speech of Mr. Shehyn on the budget that the Government had in- creased the annual expenditure by more than three quarters of a million dollars^ and of the debt by more than fioe million dollars, Mr. Desjardins, member foi- Montmor- enci, pi'oposed the following amendment to the motion for forming the House into Committee of Supplies, the 21st February, 1890: " That all the words after ' That,' be erased, and re- placed by the following : " This House is prepared to vote Her Majesty the subsidies required for the public service, but it sees with inquietude the constant and extraordinary augmentation of the public debt and the expenditure of the Province ; " This House is of opinion, that the debt ought not to be further increased, but that the Government ought rather to direct themselves to its diminution ; " This House is also of opinion that, with the view of preventing the imposition of new taxes, and also of de- creasing those which already exist, the public affairs should be administered with the greatest economy ; " That the expendidure can be much diminished with- out injury to the public service, and that the duty of the Government is to make this reduction ; " This House believes it to be its duty to express its opinion that in continuing the extravagant financial policy which they have inaugurated from their acces- sion to power, the Government compromise the existence of our provincial institutions." 21 ' The following is the vote : Yeas— Messrs. Beauchamp, Casgrain, Desjardins, Duplessia, England, Faucher de St. Maurice, Flynn, Hall, Lapolnte, Le- blanc, Martin, Macintosh, Owens, Picard, Poupore and Taillon — 16. Mchhan3, Mercier. Morin. Murphy, Pelletier, Pilon, Rinfret. Kobidoux, Rocheleau, Shehyn, Tessier (Portneuf ), Tessier (Ri- mouski) and frudel— 31. (See pages 322 and 323 of Proems- Verbal of Legislative Assembly, session 1890). In voting for Mr. Desjardins* amendment, the members of the Opposition voted against the increase of the debt, for the diminution of expenditure, against the increase of taxes undfor t?ie diminution of existing taxes. In voting against Mr. Desjardins' amendment, Mi-. Mercier and his partisans voted for the increase of the debt, against the increase of expenditure, for the increase of the taxes and against the diminution of existing taxes. Assuredly the electors of the Province cannot hesitate a single instant. Their duty is to vote for the candidates who approve of Mr. Desjardins' amendment, and against the candidate who approve of Mi*. Mercier and his par- tisans, for having voted for the augmentation of the debts, the expenditure, and the taxes. Mr. Mercier and his partisans vote against a proposition for diminishing the costs of admin- istration of justice. In 1885-86, the Eoss Government expended but $363,- 746-48 for the administration of justice, and $;^56 646 48 in 1884-85. At the session of 1889, the Mercier Government demanded of the House to vote it $375,000.00 for the administration of justice during the year 1889-90. 22 During the six months of the financial year, ending Slst December, 1889, it expended $278,781.00, that is to say, nearly three-quarters of the sum voted for the whole year. Further, at the last session, the Mercier Government demanded of the House to vote it a further sum of $34,000.00 for the administration of justice. At the sitting of 25th February, 1890, Hon. Mr. Shehyn pro- posed that the House concur in this resolution. Hon. Mr. Taillon proposed as amendment : " That all the words after ' that ' be erased, and be replaced by the following : " This House does not now concur in this resolution, but, " Seeing that the costs of the administration of justice were but $363,746.48 for the year 1885-86, and were $356,646.48 for the year 1884-85 ; *' Seeing that the House voted the sum of $375,000.00 in the general budget of the year 1889-90, and seeing that if the Government practised a wise economy in this branch of the public service, this sum would be sufficient ; "This House does not believe it to be its duty to authorize this further expenditure of $34,000.00." Mr. Eobidoux proposed an amendment to the amend- ment : " That all the words after * that,' in the amendment, be erased, and be replaced by the following : "This House is satisfied by the explanations of the Receiver-General, and declares in voting for the said resolution : " 1. That the increase in the expenses of the adminis- tration of justice is caused by the general and inevitable increase of business, by the great number of important criminal cases which have lately taken place, and which have necessitated additional very long and very expensive terms; " 2. That, further, the amount of these expenses for the current year, comprising the credit demanded by the said a'esolution, will be $412,000. 00, embracing the increase of salaries demanded by both parties, and lately done ; while in 1876-77 they were $404,725.00, and, in 1877-78, $422,624.77 ; " Moreover, the receipts of the Prothonotary's office of Montreal have considerably increased, and, according to Mr. Longpr^'s report, placed before the House to-day, the surplus of receipts over expenses of the said office were as follows, since 1885 :" 1885-86 Surplus $14,060.81 1886-87 " 7,624.84 1887-88 - 17,037.20 1888-89 " 26,506.50 The sub-amendment, having been put, was adoptc i on the following division : Ayes.— Messrs. Basinet, Bernatchez, Bisson, Bourbonnais, Boyer, Cameron, Cardin, David, D^ch6ne (of L'Islet), De Grosbois, Dostaler, Dumais, Forest, Gagnon, Gladu, Goyette, Lafontaine, lialibert^, Legris, Lussier, McShane, Mercier, Morin, Murphy, Pelletier, Pilon, Robidoux, Rocheleau, Shehyn, Tessier (of Portneuf), Tessier (of Rimouski), Trudel and Turcotte— 33. Nays.— Messrs. Baldwin. Beauchamp, Blanchet, Casgrain, England, Flynn, Hall, Lapointe, Leblanc, Martin, Mcintosh, Nantel, Owens, Picard, Spencer, Taillon and Tourigny— 17. (See page 343 Proces Verbal of Legislative Assembly, session 1890.) It may be said of the sub-amendment of Mr. Robidoux " qui s'exciise s'accuse." The Government wished to make excuses for its squanderings by futile pretexts. The Receiver-General gave no satisfactory explanation of the increased expenditure. This increase had by no means been caused by the general and inevitable aug- mentation of business. The figures named in the second paragraph of the sub- amendment of Mr. Robidoux prove that the Ross Gov- ernment had successfully worked to diminish the ex- penses of the administration of justice, since it had suc- ceeded in reducing them to $356,646.48 in 1884-85. Contrary from what might be supposed by the third paragraph of the sub-amendment of Mr. Robidoux, the 24 total revenue of the administration of justice, far from increasing, diminished, since it fell from $252,204.23 in 18S7-88 to $214,(126/3 in 1888-89, thus showing a de- crease of $3T,57T.60. In voting for the sub-amendment of Mr. Eobidoux and against the amendment of Hon. Mr. Talllon, Mr. Mercier and his partisans voted againt the diminution of the ex- penses of the administration of justice. Mr. Taillon pro- posed tlie saving of $34,000. Mr. Mercier and his par- tizans voted against this saving. Mr. Mercier and his partizans vote agrainst a savingr of $54,752.00. The Mercier Government demanded of the House at the last session to vote it $239,742 for the expenses of the civil government of the province for the year 1890- 91. In 1884-85, the Eoss Government expended only $187,104.52 for the civil government and $183,514.50 in 1885-86. The Opposition would not vote the extravagant sum demanded by the Mercier Government for the civil government for the years 1890-91. It was Mr. Leblanc, the member for Laval, who made the following proposi- tion in the name of the Opposition : " Mr. Leblanc proposes, as an amendment, that all the words after * That' be erased and replaced by the follow- ing: — This resolution be not now read a second time; but, seeing that the cost of the civil government were only $187,104.52 for the year 1884-85 and $183,514.50 for the year 1885-86, and seeing that these sums are suf- ficient for the requirements of the public service ; this House is of the opinion that the expenses of the civil government for the year 1890-91 ought to be reduced ifrom $239,742 to $185,000, a diminution of $54,000." Mr. Pilon, proposed as a sub-amendment, that all the words after "That" on the said amendment, be erased, and replaced by the following : — 25 " This House cannot blame this augmentation of the expenses of the civil service, seeing that it is in great part due to the creation of a special ministry of agricul- ture and colonization, and the considerable growth of business that has ai-isen in all the departments since 1887." This sub-amendment having been put to vote was adopted on the following division : — Yeas -— Messrs. Basinet, Bernatchez, Bisson, Bourbonnais, Boyer. Cameron, Cardin, David. D6ch^ne (I'lslet), DeGrosbois>, Dostaler, Dumais, Duhamel, Forest, Gagnon, Gladu, Goyette, Lalibert^, Lemieux, Legris, Lussier, Mercier, Morin, Murphy, Pelletier, Pilon, Rinfret, Robidoux, Rocheleau, Shehyn, Tessier (Portneuf) and Trudel— 32. Nays— Messrs. Baldwin, Beauchamp, Casgrain, Desjardins, Duplessis, England, Flynn, Lapoinle, Leblanc, Martin, Mcintosh, Xantel, Picard, Poupore, Taillon and Tourigny— 17. (See page 534 of proces-verbals of Legislative Assem- bly, session of 1889.) In voting for the sub-amendment of Mr. Pilon and against the amendment of Mr, Leblanc, Mr. Mercier and his partisans therefore voted against a saving of $54,742. The sub-amendment of Mr. Pilon had been moved only as an excuse for the squanderings of the Government. The increase of expenditure were not due in a great mea- sure to the ci'eation of a special ministry of agriculture and colonization, for the very good reason that there was always a minister of agriculture and colonization in the province of Quebec since Confederation in 1867. The only difference that now exists, is that that ministry is separated from that of public works, and that in con- sequence the province is uunecessarily obliged to pay the salaries of several new employees. No sensible man will believe that the business of the public de- partments has so much increased since 1887, that the Mercier Government were obliged to increase the ex- penses of the civil government by $54,742. The Gov- ernment has engaged a host of useless employees, and has 26 raised many salaries. This explains the augmentation of the expenses. The Opposition propose a farther saving of $36,603, but Mr. Mercier and his partisans op- pose it. Always extravagant, the Mercier Government, asked the House to vote it $411,603.'73 for the expenses of the administration of justice for the year 1890-91. To this proposition Mr. Beauchamp, member for the county of Two Mountains, moved the following amendment : — " That all the words after ' That' be erased and the fol- lowing substituted : The House does not now concur in this resolution ; but, seeing that the coste of the adminis- tration of justice were but $303,746.48 for the year 1885- 86 and $356,646.48 for the year 1884-85 ; "This House is of the opinion that in practising eco- nomy, the Government can provide for the administra- tion of justice with a less sum than $411,603.73 inserted in the budget, and that the expenses of this branch of public serv je for the year 1890-91, ought to be reduced to 8375,000 ; a diminution of $36,603.73." Hon. Mr. Gagnon proposed as sub-amendment : " That all the words after ' That' in the said araen England, Faucher de St Maurice, Flynn, Lapointe, Leblanc, Nantel, Picard, and Taillon--12. Nays. — Messrs. Basinet, Beniatchez, Bourbonnais, Cardin, 29 Champagne, D^chene (of I'Islet), De Grosbois, Dostaler, Dumais Duhamel, Forest, (rladu, Goyette, Legris, Mercier, Morin, Mur- phy, Pelletier, Pilon, Rinfret, Robidoux, Rocheleau. Shehvn and Tessier (ofPortneuf)-24! ' °"*'''^"' (Seepages 673 and 674 ofprocds-verbals of Legislative Assembly, session of 1890.) In voting against Mr. Picard's amendment, Mr. Mer- cier and his partisans therefore voted against an economy of ,1^15,000.00. Mr. Taillon and his friends voted in favor of this econ- omy of $15,000.00. At the same sitting, Mr. Lapointe, member for Yau- dreuil proposed the following amendment : " That all the words after ' that ' be erased and the fol- lowing subsituted: " This House is of opinion that the general expenses of the Crown Lands Department for the year 1890-91 ought to be reduced from $86,000.00 to $60,000.00, a diminution of $26,000.00." The amendment of Mr. Lapointe was rejected by the same vote given on the preceding amendment of Mr. Picard. (See page 674 of the proc^s-verbals of the Legislative Assembly, session of 1890.) Mr. Lapointe then proposed to diminish by $26,000.00 the general expenses of the Crown Lands Department. Mr. Taillon and his friends voted for this economy of $26,000, but Mr. Mercier and his partisans voted against it. An Alarming Comparison. The following comparison is very alarming, and fully displays the extravagance of the Mercier Government : During the four years from the first of July, 1882, to 30th June, 1886, the Conservative Governments had ex- pended the following sum (see table E of the Public Ac- counts of 1889): 30 1882-83 $3,096,943 27 1883-84 3,124,619 94 1884-85 2,936,733 86 1885-86. 3,032,607 25 Amounting to, in four years $12,190,904 32 It may now be seen what would be the expenditure of the Mercier Government during the four years from the Ist July, 1887, to 30th June, 1891, if, unfortunately for the Province, it should remain such a length of time in power : 1887-88 $3,552,820 12 1888-89 3,780,615 21 1889-90 (at least- 3,900,000 00 1890-91 (at least) 3,950,000 00 Amount $15,183,415 33 Let us now compare the four years of the Mercier Gov- ernment with the four years of the preceding Govern- ments : Expenses of Mercier Government $15,183,415 00 Do. of preceding Governments 12,190,904 00 $2,993,51 < .» The Mercier Government will thus be responsible for an increase of expenditure of three millions of dol- lars, in round figures, in the brief space of four years ! Increase of the Debt. Mr. Mercier and his political friends had promised not to increase the debt of the Province, and to exert them- selves to diminish it. They have violated this promise. On the coming into power of the Mercier Government Mr. Shehyn, the Treasurer, had calculated that the debt of the Province had reached the amount of $22,143,- 447.65. (See page 500 of Debates of the Legislative Assembly of 1887.) 31 In his Budget speech on Feb. 21, 1890, Mr. Shebyn was obliged to declare that on June 30, 1889, the liabili- ties, that is, the debt of the Pi'ovince, wus S2'7, 175.808. (See page 18 of Mr. Shehyn's speech in 1890.) Let us compare the amount of the debt with that at the conclusion of the Eoss Government : Provincial debt June 30, 1889 «97 1 (^7 sna oi Provincial debt Jan. 31,'l887 ...... . :;; 22,143,447 56 Increase $5,014,360 65 Thus in less than two years and a half the Mercier Government has, by its own acknowledgment, increased the debt of the Province by more than five millions of dollars. The situation to-day is still worse. With the new obligations contracted by the Mercier Government dur- ing last session the total debt of the Province exceeded $28,000,000 on May 1st, 1890. So that the Mercier Government has actually increased the debt by nearly six millions of dollars since it has come into power that is to say, since a little over three years ago. It is proved by the condition of the assets and liabili- ties of the Prov'nce, as published at pages 18 and 19 of his Budget Sp. .!h, Feb. 21, 1890, that Mr. Shehyn ad- mits that on June 30, 1889, the net debt, that is, the excess of liabilities over assets, was $14,343,847.71. At page 428 of the Debates of the Legislative Assembly of 1887, Mr. Shehyn said that on Jan. 31, 1887, the net debt was $11,389,167.11. Let us thus compare and summarize : Net debt June 80, 1889 (as stated by Mr. onehyn) «i/iaio 047 ti Net debt Jan. 31. 1887 (as stated bv"Mr ' ' ^^^^^^y^) '. 11.339,167 11 Increase admitted by Mr. Shehyn $2 954 680 60 Mr. Shehyn is thus obliged to admit an increase in the 32 net debt of nearly three millions of dollars in less than two years and a half. But Mr. Shehyn has not counted all the obligations of the Province. To the net debt cal- culated by Mr. Shehyii there should be added the $460,- 000 voted for settlement of the Jesuit question; the ex- penses chargeable to capital, amounting to $960,000, which the Government had voted for the two years 1889-90 and 1890-91 ; the new subsidies voted to rail- roads at last session, $80,000 ; the deficit of $466,000 in the first six months of the current year 1890-91, which brings the increased indebtedness up to five millions of dollars in round figures. The Floating Debt. The floating debt is larger than ever. On Dec. 31st, 1889, it appeared from a statement submitted to the House, that the amount due for deposits was $2,272,311 There was also due for railroad subsidies 2,421 ,341 For portion of Protestant minority in Jesuit matter.. 00,000 Further, the Government had voted for expenses chargeable to capital : balance for 1889-90 1 86,503 For 1890-91 912,183 And further new subsidies to railroad companies 80,000 $5,932,338 To meet this floating debt of veiy nearly Six Millions of Dollars, the Mercier Government had only, on Dec. Hist, 1889, $676,955, deduction being made of $42,225.75 of cheques unpaid to this date. The situation is frightful. The borrowed $3,500,000. After all that Mr. Mercier had said against borrowing, the House and the Province were much surprised to hear 33 him, on the first session after his coming into power demand authority to borrow the enormous sum of $3,500,000. Hei-e ai'e the terms in which he announces the pro- posed loan, in the speech from the throne, on March 16, lo87 ; — ;^ My Government has not had time to mature any suitable project for providin.ir the resources necessary for »Itt..?.T'^" kT®'^''"''->^' ^'"^ t'^^''« ^'^^'"^«i"8 no other aitei native but to sugo-est your making ,, „ow loan sufficient to pay all that may be legitimately due." Three years and a half have since passed away, and what have the Mercier Government done to regulate the financial question ? Far from regulating it, thev have rendered it so difficult that the Province is menaced with a disaster. They have increased taxation, by collecting duties from commercial corporations, by raising licenses 25 per cent-more than ten dollars on each license— by increasing the landed revenue from timber limits, and the right of cutting timber to $150 000 per annum. The results of the policy of the Mercier Government have been— the increase of the debt by several millions of dollars, an alarming increase of expenses, and the recurrence of deficits, to which the preceding Government had made an end, and the empty- ing of the treasury by the most scandalous extravagance. Mr. Mercier pretended that if his Government bor- rowed, it was to pay the obligations of the floating debt incuiTed by the preceding Government. Mr. Mercier stated that he had no other alternative than to borrow, because his Government had not had time to mature any plan suitable for creating the resources necessary for the then present emergency. In contradiction to these last statements of Mr. Merciei', it is easy to prove : 3 34 First, that the obligations of the floatino; debt, on his coming into power, did not oblige him to make without delay a loan of $3,500,000 ; Set'ondl3^ that Mr. Mercier had, if he so wished, another alternative than that of incurring this loan. The following are the figures of this floating debt at the date of January 31st, ISST, as Mr. Mercier pretended to establish it in the preamble of the same law author- izing the loan : For temporary loans and trust funds .'?72y,227 67 Drafts unpaid ]6,196 78 Balance of subsidies granted to certain E. R. com- panies before the year 1886 579,732 25 The payment of the first 35 percent. of subsidies in cash $1,084,328 50 And also for paying the first 35 per cent of the same subsidies, con- verted into cash $464,100 00 $1,548,428 50 The whole in virtue of the Statute 41'-50 Victoria, chap. 7*7, (188G). For payment for work to be finished on the Legis- tive Buildings and Court House at Quebec, on Avhich the sum of $160,000 was already due. . $ 437,937 06 For balance due on purchase of lands and other authorized debts, in connection with Q. M. O- &0. R 64,070 00 To re-establish to the sinking-fund the amount lost on deposit at Exchange Bank 27,000 00 To supplement the current insufficient ordinary revenues of law courts (1886-87) '. 370,842 06 Consideriug that the total of these several sums amounted on January 31, 1887, to three mil- lions, seven hundred and sixty-three thousand four hundred and thirty-four dollars and thir- ty-two cents 3,763>434 32 Considering that, in addition to this sum, the follow- ing are required for the wants of the public service, be- sides the ordinary expenses : — For enlargement of the Montreal Court-Housa . . . 200,000 00 To encourage the construction of iron bridges in municipalities 25,000 00 35 To pay a portion of the cost of the exploration re- commended by legislative Assembly, June 14, 188G, in the counties of Dorchester, levis, Bellechasse, Montmagny, Kamouraska, Te- niiscouata, Lotbiniere, Megantic, Artiiabaska andWolfe..... $ 10,000 00 tor amount of the supplementary budget ex- penses in lav courts 30,190 57 Considering that the latter sums amonnted to two hundred and seventy-four thousand, one hun- dred and ninety-two dollars and tifty-seven cents 274 190 57 Forming, when added to the sum of three millions " ' seven hundred and sixty-three thousand, four hundred and thirty-four dollars and thirty- <^wo cents .V«^5,434 32 A gross amount of four millions, thirty-seven thou- sand six hundred and twenty-four dollars and eighty-nine cents ^4,037,624 89 TliU8, according to the preamble of the law cited 2;6r- batim, Ml'. .Mei'c.'ier pretended being obliged to face obli- gations very nearly equal to $4,037,024.89, and that he was under the absolute necessity of borrowing at least $3,500,000. We ai*e about to demolish this pi-etension of Mr. Mer- cier by proving in the first place that he had not these $3,500,000 of obligations to meet soon : Let us consider the preceding figures. On January 21, 1887, the temporary loans and trust- funds amounted to $729,227.07, of which $500,000 were for temporary loans, and $229,227.67 were foj- trust- funds. Mr. Morcier and Mr. Shehyn, the Treasure!', knew per- fectly well that the Government was not obliged to bor- row in order to pay the trust funds, foi- these funds were composed, as they are still composed, of deposits, similar to those of the funds of depositors in pension banks, and the guaranteed deposits of public employees. The Gov- ernment administers these funds. That which they pay 30 dui'in/^' the year, is generally composed of fresh do[»osit.s. ThuH, on June HOth, 1888, the trust fund deposits amounted to nearly $200,000, which proves clearly that Mr. Mercier was not obliged to borrow to pay the trust funds on January ^^Ist, 1887, as, in fact, he has not paid them. The G(3vernment had borrowed temporarily fioni the Bank of Montreal the sum of $500,000. The bank did not require the imnicJiate re-payment of this loan. The Ministei" being in nowise pressed to pi-ovide for it, and not being lequired to pjiy it immediately, he borrowed from the same banic an additional sum of $100,000 on April, Ifclth, 1887, $300,000 on June 15th, 1887, and $200,000 from the '' Caisse d'Economie de Qu(5bec," on November 4rth, 1887. Mr. Mercier and Mr. Shohyn could thenj without the least inconvenience to the credit oi- administration of provincial affairs, have taken time to matuj-e the grand financial measures which they an- nounced in the speech from the throne at the opening of the session of 1887, and which they said were of a nature to provide an alternative instead of making a per- manent loan. We may then deduct from the amount of obligations which the Government pretended they were obliged to pay at very short notice, the amount of the temporaiy loans and trust funds, that is, $729,227.07. To induce the majority of the House to authoi'ize him in making a permanent loan of $3,500,000, Mr. Mercier had calculated in the list of obligations which he was obliged to meet very shortly, those of the balance for subsidies to certain railway companies gj*anted be- fore the year 1886, $579,732.25, and land grants con- verted into money, $1,548,428.50, or a total of $2,128," 160.75. This calculation was audaciously exaggerated for the sole object of deceiving the House with regard 31 . to the gi-avity of the financial situation, favorable enough, however, up to this period, and in order to wrest ^ZVnn^V^""''"" '^'' -^ -^^uthority to borrow the $3,- ^^00,000. In the hrst ph.ce, Mr. Morcier and Mr. Shehyn knew very well that a considerable ,,ortion, at least 25 percent., of these $iM2S, 160, would not be due before ^several years, because these subsidies are only payable in the porportion and in accordance with the process of work on the subsidized roads. There was then no im- mediate, nor for some time would there be, any nressinc. necessity to borrow for these subsidies, of which the payment was not absolutely required, and had not beer, demanded. The Government has no possible excuse for they were well aware of the fact. Further, in the $1,54S,42S.50 for subsidies of land.s converted mto money, was counted the sum of $4(14 J 00 for the subsidies to be converted. But Mr. Mercier was Taw of 1 i.r''^r^ '" "^'''^ ''"-^ conversion. After the law of 1880, the conversion of landed concessions into cash subsidies was not obligatory, but simply quite optional, at the discretion of the Government. The previous Government had considered it to be in the mterest of the public to make the conversion of a part of these landed concessions in cash subsidies to the amoun of SI 084,328.50. If Mr. Mercier did n.t consider t an advisable policy, he was not at all obliged to con- tinue It. If on the contrary, he approved and continued It, he should have had the courage and have taken the responsibdityofdoingso,and not have committed the odious injustice of throwing this responsibility on his predecessors. If he did not intend to continue it he would not have been obliged to borrow these $464 100 which he counted in the preamble to the law for the loan If he continued it, he could not pretend that he was 38 obliged to borrow this sum because this was an obliga- tion which his predocessors had loft hini. In the spring of 1887, it would have been easy for Mr. Mercier to foresee that up to March, 1880, his Government would not have had more than 81,000,000 for subsidies to railway companies voted before his coming into power. And to pay this amount, he had nearly two long years, that is, quite time enough in which to mature and adopt the necessary financial measures, which he had declared in the speech from the throne in 1887, could have avoid- ed the necessity of borrowing the $3,500,000. This is not what Mr. Mercier has done. He had audaciously in- creased the amount of the obligations to be met in the near future, and he pretended that he rec^uired at once at least $2,128,100.75 for the railwaj- companies. The riovernment wore deceived, or they deceived the House; more than three years have since elapsed, and there still remains at least a million on these old subsi- dies yet to be paid. Instead of these $64,070 which Mr. Mercier protended to be obliged to pay without delay for the balance due f«:>r lands and other debts in connection with the North Shore Kailway, the Government has only had to pay $1S,- 00() from April 1, 1887, to June 30, 1888; or a difference of at least $40,070 yet to be deducted. Mr. Mercier and Mr. Shehyu had counted $10,190,78 for warrants unj)aid, $370,842.06 for the deficit as pro- vided in 1886-87, and $30,1!M).58 for the supplementary budget of the same year 1886-87. The (xovernment did not in the least scruple to increase these figures without sufficient grounds, since they counted a second time the $1(5,1 96.78 for unpaid warrants and the $39,190.57 of the supplementary budget, amounts which had clearly been previously included in that of $370,842.06 of the pretend- ed deficit of the year. 39 The Mercier Govei-nment is solely responsible for the deficit of the year 1886-87, wliich Mr. Shehyn has cal- culated at $323,231.16 in table E of the Public Accounts 1887-88. They are responsible for it, because from iheir entrance into power they have plunged into exti-ava- gances ever since continued with the greatest reckless- ness. They are responsible for it also, inasmuch as during the same period they have neglected (he con- sideration and appreciation of the provincial revenues. If, since his coming into ].owor, Mr Mercier had administered the provincial aflaiis with prudence and economy; if he had energetically and intelligently appre- ciated the public revenue, he could easily have main- tained an equilibrium in financial operations for the year 1886-87. His Government is solely responsible for the deficit of 1886-87. There should also be deducted (he $200,000 to enlarge Montreal Court [Fouse. When Mr. Mercier counted this sum as an obligation nearly due, he knew that the works for enlarging the Montreal Court House were still only in contemplation. He knew very well that a consider- able time must elapse before they could be undertaken. The fact is that two long years and a half have since passed away, and the works for enlargement of Montreal Court House have not yet commenced, and they are not likely to be for some time yet. It is quite evident that it was not necessary, in May, I8S7. to authorize a per- manent loan foi' these works. The $25,000 for iron bi-idges, and the $10,000 for explorations in the counties of Dorchester, Levis, Belle- chasse, Montmagny, are expenses which should have been paid by means of oi-dinary revenues, a.id not defrayed by the proceeds of a loan. They should also be oyer, Cameron, Cardin, Dechene (of LTslet), Diihamel, Forest, Ga,^- non, Girouard, Gladn, Laliberte, Lareau, Larochelle, Ijemieux, Lnssier, Martin (of Kimouski), McShane, Mercier, Morin, ^NFur- phy, Pilon, Rinfret, Robidoux, Rocheloau, Shehyn, Sylvestre, Tessier, Trudel and Tarcotte. — ;)2. (See puges 250 and 2ol of the Journals of Legislative Assembly, session of 1887.) Having thus obtained from a majority forgetful of the public interest, authority to borrow $3,500,000, the Min- istry of Ml'. Mercier, which imagined that this sum would l)e inexhaustible, plunged into a series of oxtra- vancies which ruined the piovince. The ill-advised neg'otiations for the loan. The session of 1887 was no sooner terminated, than the predictions of the Opposition were veritied, so to speak, to the very latter. The Privy Council, in h]ngland, contributing to the in- terests of the province in the affairs of commercial cor- porations, assured to the Government the arrears of taxes from these corporations, and a revenue from this source for the years 1887-88 and 18S8-8!» of a sum amounting to 4:i about $700,000. The Govomment of Ontario paid to our province $100,000, the amount which it owed to it from the common school fund. The city of Montreal settled its account with the province by paying $125,000. This made nearly a million of dollars extra receipts which Mr. Mercier used in the payment of obligations on account of eapital. A Government which would have had at heart a desire to serve the best interests of the ])rovince would' have renounced the idea of borrowing, when they were placed in possession of such considerable resources. This was not what Mr. Mercier did. He persisted in borrowing the $3,'00,000. Early in the summer of 1887, he commenced negotiations for the loan. These nego- ciations have been a disgrace to the province, to which it has caused a loss of at least $175,000. The Government had at first negotiated the loan in New York, at 94 per cent, in debentures at 3^. Before signing the contract, the Government did not even exact guarantees that those with whom they were negotiating were able to fulfil their obligations. The New York syndicate v/as represented by a Mr. Xelson. He was unable to fulfil the contract. Mr. Coudert, a New York lawyer, consulted by the Govei-nment as to the claim they had against Mr. Nelson, replied as fol- lows : " However, this is a (jucstion of expendiency rather than of claim whether it would be advisable to enter an action against him under the circumstances. "From information which has been given us, it is not probable that Mr. Nelson is a man of considerable finan- cial responsibility, and a judgment obtained against him would, 1 fear, result in a profitless victory." If wishing to understand more definitely the standing of the man with whom the Mercier Government had negotiated such an important matter as that of a loan for $8,500,0(10, one has only to read the following des- patch : New York, November 21, 1887. JosEi'ii SiiuHYN, Quebec. The man about whom youareen(|uirin<; is actually, we think, worth 8100,000. His assets are composed moreover of invest- ments in unstable enterprises. He vras formerly in the liquor business, and became bankrupt. Antecedents unsatisfactory, not known among the principal class of bankers. (Signed) Watson *& Laxc4. Mr. Shehyn should have made his enquiries in advance before comm itting the mistake of negotiating the loan with one who had failed in the liquor business, whose antecedents were unsatisfactory, and who was unknown among first-class bankers. The Contract ivith the '' Credit Lyannais." The loan in New York having definitely failed, they wore obliged to address others. They hastily concluded the transaction with the "Credit Lyonnais." This time, at all events, they were treating with responsible parties, quite capable of fultilling the obligations which they contracted. But the directors of this institution were aware of the New York tiasco. They knew that the (rovernment had been disappointed, were in a very ditfi- cult strait, and would hail as saviours those who would come to the rescue. And they profited by it in obtaining from the Government conditions more advantageous to the shareholders of the " Credit Lyonnais." Whatever Mr. Shehyn may hav^e said against the sj'^stem of giving bonds to the highest bidder, the Minister should not have sold the obligations of the province at the price fixed by the " Crddit Lyonnais." lie should rather, on the con- trary, have placed these bonds upon the market, at a 45 fixed minimum, which might easily have been made at 99, thus reserving to the province the opportunity of profitmg by the competition of those who seek a first- class investment, at a rate of interest relatively raised for these to four per cent. Mr. Shehyn has made elaborate calculations to piove that his loan has been made on better terms than those preceding it. This comparison is entirely unfounded. The results of these operations caimot properly be com- pared without also comparing the situation at the different periods at which they were made. Thei-e is a very g,-eat difference in the genei-al condition of public credit to-day and in 1874, the year of our first Provincial loan. Then the Govei-nmcnt with difficulty obtained 90 per cent, for its bonds at 4 per cent, interest. In 1888 there was negotiated a loan of 95| at 3 pei- cent. ; this was a high average of HO per cent, of our federal cjedit since 1874. The prolific political progress of Conserva- tive Governments since Confederation at Quebec, as at Ottawa, had well developed our Provincial credit by contidence in our futui-o which it had inspired in capi- talists in search of safe and profitable investments. It 18, thanks to this intelligent and patriotic policy, that the present Government has been able to negotiate with the "Credit Lyonnais " on the conditions made, and Avhich are nevertheless not the best which might have been made under the cii-cumstances, in the situation, at that period, of our public credit and that of the money market. Mr. 8hehyn should have been able to under- stand that the true (luestion for consideration was if he had really made the transaction the most advantageous then possible. As to the proposals which had been made to it having been moi-e tavorable than those obtained in 1874, 1876, 1878, etc., it does not follow that it was jus- tifiable to make a contract upon conditions that caused 46 a conaiderablo loss to tlio Province, to the advantage of those with whom it negotiated. After having shown all the clumsiness of the Ministry of Mr. Mercier in the negotiations foi- the loan, Mi-. Desjar- dins proposed to the House to censure the Government as they merited, by the following amendment to the motion of Mr. Shehyn for the formation of a committee of supplies : — " That all the words after ' That' be erased, and the following substituted : •• This House is prepared to vote Her Majesty the sub- sidies, but it regrets, that after having succeeded in the cause against the commercial corporations by the judg- ment of a Privy Council, which assured the Govern- ment a receipt of. at least. $700,000.00; after having received a $100,000.00 from Ontario and $125,000.00 from the City of Montreal, these three sums forming a total of nine hundred and twenty-five thousand dollars, the Government persisted in making, without necessity, a loan of three million and a half dollars ; 'That this House also regrets, that this Government has conducted in an injurious and deplorable manner lo the credit of the Province, the negotiations for the loan which they attempted, but, without success, to make in the New York market, last year ; ''That this House further regrets that the Govern- ment has caused a loss to the Province of a sum of not less than $175,000, in selling the bonds of the said loan at a fixed price, instead of placing them on the market and fixing the minimum price of issue, and ottering them to public competition." The following is the vote : For the amendment of Mr. Desjardins : Messrs- Baldwin, Beauchamp, Blanchet, Casgraiu, Deschenes (T^miacouata), Desjardins, Duplessis, Faucher de St. Maurice, Fiynn, Hall, Lapointe, Mcintosh, Xante), Owens, Poupore, Spencer and Taillon — 17. Against the amendment : Messrs. Basinet, Bernatchez, Bisson, Bourbonnais, Cardiii, (hampagne, David, Dechene (L'Islet),' De Grosbois, Duhamel, 47 Jorest C^agnon, Girouard, Gludu, Goyette, Lafontaine, La- roohelle Lemieux Legris. Lussier Martin (Rimouskf' Me- Rochon, Shehyn, Sylvestre, Tessier, Trudel, Turcotte-:M. ' (See pages 226 and 227 of the Journals of the Leo-is- lative Assembly, of 1888.) * It now remains for the people of the Province to de- mand of the partisans of the Ministry a strict account of their vote against this amendment. How the Loan of $3,500,000 has been Employed. Mr. Mercier had pretended, in 1887, that he was obhged to borrow $3,500,000 to pay the obligations con- tracted by his predecessoi-s. We have shown that this was a false pretension. Mr. Mercier himself gave a cer- tain proof of it, when he asked of the House at the ses- sion of 1888, only a few weeks after he had succeeded in negotiating the loan, to vote new subsidies to railways amounting to more than $3,000,000. After having so long contested the policy of subsidies to railways, Mr. Mercier stultified himself in adopting it. On his part it was a new and flagrant contradiction. But he was also very blameable for having obtained from the House authorization to borj-ow, under the pretext that it was to pay old obligations, when he had decided to have several million dollars voted for new subsidies to railways. On 30th June, 1889, more than one milUon had been paid for the subsidies for which the Ministry of Mr. Mercier is alone responsible. Mi-. Mercier had estimated, in the law for the loan, that he required $427,937 to pay for the whole of thJ balance of cost of the Legislative buildings and of the .Court House at Quebec. These costs have l)con increased in a scandalous manner by the Mercier Government, and from let April, 1887, to 31st December, 1888, he had dis- 48 bursed for these buildings the sum of $825,317, that is to say, very nearly $400,000 more than the amount men- tioned as necessary in the law for the loan. The deficits and extravagant augmentations In the ex- penses of the Mercier Government have absorbed a gjeat part of the loan of $:],500,000, and aftei- the end oV the month of February, 1880, there remained not a cent of it. In I'eply to an order of the House, of date 6th Feb- i-uary, 1880, it appears that, at that date, the Mercier Government had paid but $2,2G8,S74.70 on the obliga- tions that should have been met by means of the loan. And in the same month of February, 1889, the loan of $3,500,000 was already exhausted. This proves that the Mercier Government had expended One million two hundred thousand dollars and more for other purposes than those authorized by the law. A Forced Loan. The Mercier Government expended the loan of $3,500,- 000 in less than two years. They were without a cent, and obliged, owing to their extravagances, to borrow anew. This is how they undertook to avoid asking the House for authority to issue new debentures. Three railways had deposited with the Government the following amounts to guarantee the interest on debentures which they had placed on the market: The Temiscouata Railway $ (344 573 45 The Montreal and Lake Maskinong^ Railway.... :32,703 00 The Quebec and Lake St. John Railway 1,552,394 00 -^"lount $2,229,670 45 Wishing to know the obligations that the Mercier 4f» Government had contracted in this aflPair of the depot^its of the j-ailway companies, Mr. De^jardins put the foi- lowing questionw, 25th February, 1889 : 1. At what dates did the T^miscouata, Montreal and Lake Maskinonge, and the Quebec and Lake St. John Eailways make the deposits mentioned on page 8 of Re- ceipts and Payments of the Province, from 1st July to 31 St December, 1888? 2. What interest does the Government pay on these deposits ? 3. What is the amount of the debentures of each of these companies of which the Government has guar- anteed and would guarantee the annual interest ? 4. What will be the duration of the guarantee of interest on the debentures of each of* these companies i 5. What is the rate of interest on these debentures ? 6. What sum must the Government pay annually for interest on the debentures of these companies ? The reply by Hon. Mr. Shehyn.— 1. Temiscouata August 11th, 1888 Montreal and Lake Maskinong^ September 12th, 1888 Quebec and Lake St. John July 9th, 1888 2. Four per cent. 3. Temiscouata £324,000 stg. $1,576,800 Montreal and Lake Maskinong^ $100,000 Quebec and Lake St. John £780,000 stg. $3,796,000 4. Temiscouata Ten years Montreal and Lake Maskinong^ Seven " Quebec and Lake St. John Ton " 5. Five per cent. 6. Temiscouata $73,840 Montreal and Lake Maskinong^ $5,000 Quebec and Lake St John $189,000 We see 'by this reply of Mr. Shehyn to the interpella- tion of Mr. Desjardins that the Government had engaged 4 50 itself to }3ay interest iit five per cent, on $5,4*72,800 of debentures, that is to say, that it engaged itself to pay $2*73,640 per annum during seven years, and $268,640 per annum during three more years. The Government, in less than two years, had expended the whole of the deposits of the companies, and remains with the obligation to pay the interest on their deben- tui-es. That is to say, that the Mercier Government had made a new loan, that may be considered a forced loan,, of $2,229,670. The Mercier Government had expended the $3,500,000 loan. They are just completing the expending of the $2,229,- 000 of deposits of the railway companies, They have expended the $800,000 which they received from the commercial corporations since the judgment of the Privy Council. They have expended the $100,000 which they received from the Province of Ontario. They have expended the $125,000 which they received from the City of Montreal. They have expended the $700,000 additional, which they received from the Crown Lands. They have expended the $200,000 additional, which they received from licenses. And they are again without a cent, and are obliged to borrow anew. This Mercier Government is a veritable devouring whirlpool. It is in course of rapidly ruining the Province if the electors do. not stop it. The augnnentation of taxes. When in opposition, Mr, Mercier and his partisans voted against the tax on commercial corporations. Once attaining power, Mr. Mercier maintained these 51 taxes, and made the commercial corporatioiiH jmy taxes amounting to over $800,000. ^Ir. Mercier has augmented licenses twenty-five per cent., more than ten dollars pei- license, but he was not willing to pass a law in favor of temperance. Mr. Mercier has in«reased, by $150,000 per annum, the timber licenses and the ground rent on timber limits. Notwithstanding these new taxes, the Mercier Govern- ment is in a deficit every year, because they have increased the expenses in a most extravagant manner. Another loan necessary. The extravagances of the Government has compelled it to make a new loan of several millions of dollars. AVhen Mr. Mercier borrowed the $3,500,000, in 1887-88, he said that it was to pay the floating debt. Neverthe- less, the floating debt is much greater to-day than it was at that period, since it is six millions of dollars in round numbers. And the Government has not a cent to redeem the floating debt. The duty of the Opposition, at the last session, was to requii-e that the {rovernment should tell the House and the Province how it proposed tool)tain the money to pay the obligations of the floating debt in propoj*ti( »ri as it became due. This is what Mr. Desjardins did, in the name of the Opposition, hy the following amendment that he proposed to the motion for forming the House into Committee of Supplies, at the sitting of 2()th March, 1890: Mr. Desjardins moved, as an amendment : •' That all the words after ' That ' be erased, and the fol- lowing substitutetl : " This House is prepared to vote Her Majesty the sub- sidies required for the public service, but, seeing that the Government has inserted in the general and supple- 52 mentary budget of the year 1889-90, expenses chargea- ble to capital, amounting to $1,214,000.00; "Seeing that on 31th December, 1889, there still remained $t82,000.00 to pay on this amount ; "Seeing that the Government inserted in the general budget of 1890-91, expensen chargeable to capital, amount- ing to $1,452,000.00 ; " Seeing that from now to 30th June, 1891, the Govern- ment will have, in addition, to disburse about $500,000 00 for interest, which they have guaranteed on the deben- tures of certain railway companies, for the Protestant minority portion, in the arrangment of the affairs of the properties of the Jesuits and other obligations ; " Seeing that these various sums amount to $2,734,- 000.00 ; " Seeing that the floating debt, comprising the above mentioned sum, amounts to more than $5,750,000.00 ; "Seeing that on 31st December, 1889, the Government had, to meet these obligations, only the balance of the deposits of the railway companies, namely : $676,955.00, less $42,225.00 of unpaid demands at that date ; " Seeing, that the Government has no necessary resour- ces to meet the expenses, chargeable lO capital, from now to 30th June, 1891; " This House believes, that its duty is, to insist that the Government should inform it of the means which they intend to take for procuring these resources." The follf>wing is the vote : Yeas.— Messrs. Baldwin, r»eauchamp, Blanchet, Casgrain.Des- I'ardins, Duplessis, England, Faucher de St. Maurice, Flynn, japointe, Leblanc, Martin, Mcintosh, Nantel, Owens, Picard, Spencer, Taillon, and Tourigny — 19. Nays. — Messrs. Basinet, l>ernatchez, Bisson, Bourbonnais, lioyer, Cardin, Champagne, Dechene (I'lslet), DeGrosbois, Dostaler, Dnmais, Duhamel, Forest, Gaguon, (iladu, Goyette, Lalibert^, Jjegris, Lussier, Mercier Morin, Murpliy, Pelletier, Pilon, Rinfret, Robidoux, Uocheleau, Shehyn, Tessier ( Port- neuf), Tessier (Rimouski). Trudel, and Turcotte — '.\2. (See pages 607 and ()08 of Proci^s Verbals of Legislative Assembly, session of 1890.) The Mercier Government therefore refused to tell the House how it would procure the money to pay the debts 53 which it had con traded. Why did it refuse ? Because it was afraid to avow before the general elections that it is still obliged to borrow. The Conversion of the Debt. The Mercier Government has compromised the public honor of the Province of Quebec, by its project for the forced conversion of the debt. On 10th July, 1888, they submitted to the House resolutions concerning this con- version of the debt. The fifth of these resolutions reads as follows : " Resolved, 5. — That it will be permissible, to the Lieutenant Governor in Council, to fix and determine the delay during which the holders of actual obliga- tions will be able to exchange them for new bonds or claim their re-imburseraent in cash, and to decree that after this delay, interest will accrue for all classes of bonds at the rate fixed for the new obligations." (See page 390 of the Joui-nals of the Legislative Assembly of Quebec, 1888.) By this clause the Mercier Government was author- ized to repudiate the engagements which the Province had contracted with their creditors. This was an odious policy, and derogatory to the honor of the Province. The holders of provincial debentures had the right to an intei-est of five per cent up to the time that these de- bentures became due. Mr. Mercier caused to be passed a law, by which he pretended to oblige these holders to exchange these debentures of five per cent for debentures of four per cent, oi- else, to accept their payment in cash, that is to say, the payment of the face value of these de- bentures. If the creditors refused either one or the other of these alternatives, Mr. Mercier wished, by the same law, to reduce, from five to foui* per cent, the interest on 54 provincial debentures, and thus to cause a loss of oni^ per cent interest to the holders. The Opposition showed that this was an iniquitous measure, which would, for ever, remain a stain on the l^ublic honor. The attempt to put such a law into prac- tice would have ruined the credit of the Province. Mr. Mercier, persisting in maintaining the above named clause, the Opposition performed its duty in op- posing the resolution for the forced conversion of the debt. The following is the vote : — For the Resolutions : — Messrs. Bernatchez, Bisson, Bourbonnais, Cameron, Cardin, Campagne, David, Dechene (Tlslet), Dumais, Faucher de Saint- Maurice, Forest, Gagnon, Gladu, Goyette, Lafontaine, Lalibert^, Larochelle, Lemieux, L^ris, Lussier, Mercier, Morin, Pilon, Rinfret, Kocheleau, Shehyn, Sylvestre, Tessier, Trudei and Turcotte. Against the Resolutions : — Messrs. — Baldwin, Beauchamp, Casgrain, Desjardins, Ilynn, Hall, Lapointe, Leblanc, Mcintosh, Owens, Spencer and Taiilon. ( See page 403, of the Journals of the Legislative As- sembly of 1888.) This iniquitous law provoked the severest and most just criticism in Canada and in England. The Federal authorities caused Mr. Mercier to understand that if he maintained clause five of the law, authorizing the forced conversion of the debt, there would be a good reason for its veto. It was only then that Mr. Mercier withdrew. At the session of 1880, he amended the law in abi'ogat- ing the famous fifth clause. The Mercier Government can make no othei- than an optional conversion. That is to say, that he must ac- cept the conditions of the creditors of the Province. There can be no actual profits made in a similar transac- tion. It cannot obtain a slight immeciiate advantage, without making far greater sacrifices for the future. It 55 is in the interest of the Province that the project for the convei-sion of the debt should be abandoned Messrs Shehyii and Garneau went to Europe, last year, on the subject of conversion of the debt. They did not succeed in their mis8ion, but the following shows what their voyage cost the Province:— At the sitting of 19th March, 1890, Mr. Mcintosh member for Compton, put the following question : ''What are the sums paid by the Government for fl.A :S; r-^'-^P^ of ML../Shehy„ anTSne/" .a^^ l^eply of Hon. Mr. Shehyn .— Amount of sums paid ^aaa, n-, Ke-imbursements to deduct '.'..'. *"^'ol.-.,^ ^,. ^""^^^ 4,06l65 ims voyage, therefore, cost the Province $4,008.65 IniBis so much lost money. (See page 547 of Proces-Yerbals of Legislative As- sembly, Quebec, 1890.)