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HARCOURT, TREASCRKR OF THE PROVINCK CF ONTARIO, DELIVERED ON THE 19th FEBRUARY, 1892, I ' IN THE \ \{ I . ■/ LEGISLATIVE ASSEMBLY OF ONTARIO, ON MOVING THE HOUSE INTO COMMITTEE Oi' SUPPLY. V. ■ ' TORONTO : PRINTED BY WARWICK & SONS, 68 AND 70 FRONT STREET WEST 1892. r 1 • f ' \ 1 * >'■■ -, ' , ' ■ ■*^. ^\ :' ' • 1 i " ! 1 i • FINANCIAL STATEMENT OF THE SEOnsr. Tt, ■^H.A^TiaOTJTlT. Leoislativb Assembly, Toronto, Friday, 19th February, 1892. Hon. R. Harcourt, Provincial Treasurer, who was loudly cheered on rising, said : — For the second time, Mr. Speaker, I ask the indulgence of the House while, as briefly and as clearly as I can, I discuss, first, the financial operations of the Province for the year just closed, and secondly, take a prospective view of the operations of the year upon which we are now entering. Were it not that these financial questions have a per- ennial interest for our ratepayers, I would shrink from my task, since in these yearly statements much repetition is unavoidable, and a somewhat wearisome recital of figures seems absolutely indispensable. When I remember, however, that our position financially is an enviable one, that our progress has been both steady and marked, that we have been able year by year to meet so many demands in the way of new undertakings and give increased aid to Educational, Charitable and Agricultural In- stitutions, and at the same time keep in reserve a large surplus upon which we can draw to meet emergency expenditures, my task seems to grow lighter, and I enter upon it with less fear of wearying the House. ItECEIPTS OP THK PROVINCE. 1891. SuBsinv $1,116,872 80 Spkcific Gkant 80,000 00 Intkrkst on Capital held, and Debts due b\ the Dominion to Ontario Intrbest ON Investments $1,196,872 80 300,000 00 41,023 31 341,033 31 Crown Lands Department :— CroM n Lands 92,815 29 Railway Lands 16,880 44 Clergy Lands 4,046 05 Common School Landa 8,609 31 Grammar School Lands 1, 165 53 Rent re Lands 5,271 28 Woodfl and Forests 1,022,619 31 Casual Fees 2,804 47 Refunds 5,470 07 Alooma Taxes Law Stamps Licenses Education Department 1,159,681 75 4,165 63 84,557 67 298,183 9& 41,766 92 |»DBLIC INSIITCTIONS' REVENUE :- Toronto Lunatic Asylum . , London " Hamilton " Kingston " Orillia Reformatory for Females . , Boys Central Prison Deaf and Dumb Institute. 38,265 09 9,148 08 9,188 66 3,835 63 2,129 93 3,798 38 676 10 63,017 56 176 40 130,234 8a Casual Revenue :— Provincial Secretary' Department Registrar-General's Branch Fines, etc Insurance Companies' Fees Surrogiite Court " Division " " Land Titles Office Offices of Local Masters Official Gazette Private Bills Statutes Consolidated Rules of Practice Incidentals Refunds ... Insurance Companies' Assessments . Removal of Patients 9,298 09 198 89 4,005 33 775 00 2,560 50 9,101 82 27 55 827 90 12,159 54 4,012 00 1,313 60 37 50 1,834 67 334 00 2,999 19 6,376 22 46,486 3» 9,375 4L $1,196,872 8a Merokr Rekormatory— Capital Account : 116 63 Drainaok Works Asskssmknts 14,21>9 80 New Parliament Bcildings Fund 316 74 3,327,070 84 Dbainaoe Debenture3 ... 37,463 25 •• Tile . • . . 6,066 00 Sale Annuities 269,000 00 " Dominion Bonds .500,000 00 4,138,589 09 I will first speak very briefly of our receipts. We estimated to re- ceive during the year from ordinary sources $3,298,822. We actually received $3,327,070, so that we have an excess of receipts over our esti- mate to the amount of $28,248, a result which is, I am sure, very satis- factory to the House. I need say but little as to several of our well-known items of receipts The subsidy, of course, remains the same. It represents 80 cents per head of our population according to the census of 1861. According to our present population it represents only 57 cents per head. If we were to receive 80 cents based on the last census our subsidy would be increased by about $575,000 a year. An increase of population adds to our expenditure, to our cost of Government, while on the contrary it brings, because of the increased consumption of dutiable goods, addi- tional revenue to the Federal Treasury. Our receipts from Crown Lands exceeded our estimate by the considerable sum of $59,682. From Woods and Forests Branch alone we received $22,619 more than our estimate. The Commissioner was compelled during the year to sell «ome partially burnt timber tracts, and the House will be pleased to learn that, largely due no doubt to prudent advertising and consequent keen competition, he received unexpectedly good prices for them. These sales, howev.jr, do not in any way affect last year's receipts, since the first payment to be made on their account will be made during the latter part of this year, the custom of the Department being not to exact payment until the timber is cut or sold. Crown Lands Revenue. Some general remarks as to this very important source of revenue may interest the House. Since 1872, the year when our honored leader became Premier, the gross receipts from the Crown Lands Department have amounted to $17,253,250, or an average for the twenty years, including 1891, of $862,662 per year. The largest sum received during any one year was receieved in 1872, the amount being $1,437,372 ; the smallest receipt^ viz., $445,278, was that of the year 1878. Occasionally it has been argued that we have been wasting our patrimony and squandering our capital, and thit we sell timber limits in order to get funds to meet extravagant expenditures. No details are ever given as to the alleged extravagance, and it is admitted that as settlement advances sales of timber roust from time to time be made. While it is contended that our capital should ba kept ititiOb, it is admitted that all interest received may be expended for the ordinary requirements of government. The fact that it would be utterly impossible to continue to give our large customary grants to Education, Agriculture, Asylum Maintenance, etc.» without drawing upon Crown Land receipts is conveniently overlooked. I will briefly show how these Crown Lands Department receipts have been expended. The gross receipts from sales of Crown Lands, one branch of the Orown Lands Department, since 1872 amount to $3,582,- 176, of which sum $1,114,406 is made up of accruals of interest. The total receipts from Woods and Forests during the same period amounted to $13,671,074. Of this sum $855,083 represents ground rents, which we all admit may, like interest receipts, properly be spent year by year in assisting: to meet our ordinary expendit "«!S. From the gross receipts we should deduct the expenses of management in the Orown Lands Office, includ- ing salaries and contingencies, and these for the twenty years amount to $1,018,348. Refunds amounting to $364,802 must also be deducted. These represent moneys paid into the Crown Lands Department on account of sales which have not been completed. We should alsa deduct what we call Charges on Orowu Lmds, which include costs of surveys, fire-ranging, inspection, forest-ranging, collection of dues, etc., and these aggregate for the same period $1,693,368. The net receipts then are from Crown Lands sales $2,467,770 and from Woods and Forests $9,739,373, or taken together the total net receipts from the Crown Lands Department from 1872 to 1891 amount to $12,207,143. Our Timber Assets Converted into other Assets. Let us now notice to what uses this large sum has been devoted. During the same period, that is from 1872 to 1891, we have spent on Public Buildings $5,096,293 ; Railways $5,655,478 ; Public Worka $2,324,811 ; Colonization Roads $2,146,792 ; making in all $15,223,374. We have therefore invested during this period of twenty years in Public Buildings, Railways, Public Works and Colonization Roads $3,016,231 more than the amount we have received from the Crown Lands Department from sales of land and timber. That Public Buildings and Railways are valuable permanent assets, greatly assisting the growth and development of the Province, no one will pretend to question. The same may be said of our Public W> ri.s aud Colonization Roads. The end of the] whole matter therefore is that we have subscituted for a por- tion of the assets we have in \ ids und tim> r other asaots more valuable and more productive. There han bet u no diminution or waste of assets ; one class of assets, indispensab^ and the most valuable of all conceivable assets, has b^jen substitutea for another. We have Public Buildings, Schools, Colleges and Asyluiis scattered all over the Prov- ince, of which any country might well be proud. Enlightened public opinion has demanded from time to time, and will ever continue to demand, capital expenditures such as these. Better far to spend a portion of our assets in much-needed permanent public improvements than to allow them to lie dormant in forests and in mines. Who, for example, would suggest that the Province would now be better ofi' if we had not erected expensive Agricultural College Buildings at Guelph, and Normal School Buildings at Ottawa, and if we had in their place a few more square miles of timber? Other Receipts. We received from Education $5,766 more than our estimate, the revenue under this head including the fees paid by the pupils attending the Toronto and Ottawa Model Schools, the students attending the School of Practical Science, and by the candidates attending the teachers' examination». From Algoma taxes we have receive ^ $156 more than our estimate, and from what is called Casual Revenue, the various items of which are named in the schedule of receipts, $3,514 less than our estimate. The dull times, the partial collapse in real estate, materially affect the volume of transactions in the Land Titles 0]3\ce in Toronto, the fees in which are paid by stamps, and this largely accounts for the falling ofi in the receipts from Law Stamps. Annuities. A word of explanation may be permitted as to the item of receipts appearing under the head of "Annuities." It will be remembered that in 1884 this House passed an act authorizing the Lieutenant-Governor in Council to direct the issue of terminable annuities, the term not to exceed 40 years, the rate of interest not to exceed 5 per cent., for the purpose of retiring any out-standing railway aid certificates, or any certificates which might thereafter be issued in aid of any railway under the authority of this Legislature. The then Treasurer stated that it was not expected that we would be compelled each year to issue these an- nuities, and the fact is that during three recent years, viz , 1888, 1889 and 1890, we have met the maturing railway aid certificates out of the year's receipts. Last year, having several very large exceptional ex- penditures to provide for, in order to meet the railway certificates falling due we issued annuities to the amount of $14,000 per annum. We advertised in the usual way for tenders for them, and we accepted the ofier of the Imperial Bank of Canada, it being the most favourable and covering the whole issue. The amount realised by their sale, as appears by the schedule of receipts, was $269,000, that is to say, we received $1,921.43 for every $100 of Annuity. The purchaser realises on his investment interest at the rate of a little less than 4^ per cent. per annum. When we bear in mind that the money market in the leading commercial centres was during last year greatly disturbed, that old banking houses of highest standing and widest influence tottered to their fall, that because of this, capital was unusually timid, enterprise was checked and the difficulties surrounding the negotiation of large transactions materially increased, it will be apparent to every one that we have disposed of last year's issue of annuities on most favourable terms. In discussing the rate of interest, and in making comparisons with the rates paid by the Dominion Government, for example, on its bonds, we must not overlook the fact that, while we are at no expense whatever in the way of brokerage, stamp duties, exchange or commission, the contingent expenses under these heads attached to Dominion loans, their issues being payable in England, make up a formidable item. In one of the recent Dominion budget speeches the Finance Minister states that these contingent charges increase the rate of interest by 1-3 per cent., and Sir Leonard Tilley, in 9 of receipts >ered that t-Governor erm not to it., for the es, or anv way under that it was these an- 1888, 1889 out of the )tionaI ex- certificates ter annum, e accepted favourable eir sale, as to say, we iser realises I per cent, rket in the arbed, that tottered to , enterprise 3n of large •y one that favourable omparisous tuple, on its are at no , exchange Is attached and, make et speeches s increase Tilley, ia liis budget speech of 1884, in dealing with this very question uses these words : — " Taking money at par in Canada, the interest and principal paid here is as good as at two or at two and a quarter premium in England." We have had so far five sales of ihe&e Annuities. The first of these, namely, that of 1884, was effected on a basis of a little less than 4 1-2 per cent., while as to each of the others the rate is a trifle under 4 1-4 per cent. The exact figures as to each of these transactions I will place in the hands of honorable members. Had we effected a sale in England at 3. 3-4 per cent., the brokerage, exchange and other charges incident to it, together with the expense in- curred in transmitting the half-yearly payments from time to time, would more than counterbalance the difference in the rate. While on this subject I must not forget to mention that the next issue of Annui- ties, if another issue be required, will be for a much smaller sum than each of the existing issues. If honorable gentlemen will notice the schedule of railway liabilities in their hands they will see the reason of this. Railway Aid Expenditure. We have, I am delighted to say, arrived at the time when our Rail- way Aid Expenditures will rapidly become noticeably less. This year our payment will be $141,218 as against the payment last year of $252,179, or a saving of more than $110,000 in a single year. At the end of five years the payment will be again reduced by a large amount, while for the next five years there will be annual redactions most welcome to our ratepayers. We may well congratulate ourselves on the fact that we have already successfully rolled off* by far the heaviest part of this burden. Our payments for the last ten years have averaged over $271,535 a year ; during the next ten years the average payment will be less than ^107,808 a year, a difference on the right side of more than $163,727 a year. Mr. H. E. Clarke — Any more grants to railways 1 Hon. Mr. Harcourt — I am dealing with facts as we have them now. The House will decide whether there will be further grants or not. I am speaking of existing facts, not of possibilities or probabilities. All this reminds us of the early legislation of the Province, and especially of that of 1871, that being the year when the Railway Aid 10 Policy was inaugurated. A brief summary of it, both as to grants and results, may not be out of place. In 1871 a fund $1,500,003 was set apart to aid railways on certain conditions. In the same year $400,000 was added to this fund, and a Railway Subsidy Fund created by setting apirt $100,000 a year for twenty years. These twenty years in the meantime have swiftly rolled by, and during the past year we made the very last of these payments of $100,000 each, and therefore it is that this year's burden will be much lighter than thit of previous years. In the Session of 1874, to continue my summary, authority was taken to substitute annual payments for a period extending over twenty years in lieu of a tixed sum per mile. Particular roads were singled out for special aid in the Sessions of 1876, 1877, 1878, 1881, 1889 and 1890. In 1879 we passed an Act authorizing the issue of Railway Scrip or Certificates for Railway Gra nta and in 1 884 power was taken to issue the Annuities we have been speak- ing of for retiring Riilway Scrip. In these various ways the Province has directly appropriated to and spent in assisting railway construction about $7,000,000, besides an indirect appropriation by payments to Municipalities under the Municipal Loan Fund Settlement of $1,336,997 This very liberal measure of aid stimulated enterprise on the pirt of the Municipalities, the result being Municipal subsidies amounting to about $14,000,000. We have completed since Confederation 4,450 miles of railway. The roads now under construction and receiving aid are the Port Arthur, Duluth & Western Railway and the Parry Sound Colonization Railway. I placed in the hands of honourable membera last year, as I have again done to-day, a statement showing the amounts payable annually for certificates issued by the Province in aid to rail- ways. The stitement of last year differs very widely, I am glad to say. from that now in your hands. During 1891 we paid to six of these railways the very last instalment due them, so that all our obligations, as far as these six roads are con- cerned, have been paid in full. These roads are : — The Brantford, Nor- folk & Port Burwell Railway ; the Canadi Southern Rulway ; the London, Huron & Bruce Railway ; the Midland Railway; the Prince Edward County Railway, and the Toronto, Grey & Bruce Railway. 11 grants and on certain ind, and a year for 'tly rolled payments m will be ^as taken jnty years Sessions of d an Act ay Gra nts . sen speak- Pfovince Qstruction laments to 1,336,997 le part of >unting to on 4,450 eiving aid •ry Sound I members ) amounts I to rail- id to say. istalment are con- brd, Nor- '^ay ; the e Prince Railway. Vfe have paid to these six roads, taken together, the large sum of $1,475,146, made up as follows : — B. N. & P. B. Railway $129,353 Canada Southern Railway 244,559 London, H. & B. Railway 268,839 Midland Railway 215,511 P. E. County Railway 155,520 Toronto, G. & B. Railway 461,364 Last year we made payments in aid to twenty railways : — this year the list is reduced to fourteen. In 1898 there will be only eight, while- in 1904, only twelve years from now, the solitary survivors of this long^ and honored list of Provincial pensioners will be the Port Arthur, Duluth & Western Railway and the Parry Sound Colonization Railway. Remembering the enormous load of obligations already discharged, this glance into the future, with its rapidly-diminishing burden, is certainly reassuring. In a word, we have these two pleasing facts to place side by side : first, that the Province started out over twenty years ago with a vigorous, liberal and successful policy in the direction^ of aiding railways, the municipalities, too generously it may be in some cases, rendering prompt assistance ; that our facilities in the matter of railway travel are, all things considered, extremely creditable to us ; and, in the second place, that we have without difficulty or embarrass- ment met these large railway obligations, that they are rapidly decreas- ing in amount, and that those yet to mature are very small as compared with those which we have already paid. Further, these early railway obligations are, be it remembered, as *'ar as we are concerned, the post obits of the first Parliament of Ontario, handed down by it for its successors to discharge. Railway Obligations. One more remark and I will conclude whtvt I intended saying upon this branch of my subject. From time to time it has been contended by honorable members of the Opposition that in order to ascertain what our surplus is we should first capitalize our maturing railway obligations and treat the capitalized sum as a present liability. We have refused to do this, contending that we could as reasonably capitaliae our dif - mtmmmmmffim 12 ferent yearly receipts and class the capitalized sum as a present asset. We have further pointed out that the Dominion Crovernment has aided railways in the same way, and that maturing railway obligations of this kind are not treated by the Dominion Finance Minister as a part of the existing debt of the Dominion. What I wish, however, now to point out is this : that our opponents in adhering to this argu- ment are, it would seem, deliberately keeping out of sight the history of the legislation relating to railway aid ; that they will learn, if they peruse the debates of twenty years ago, that the yearly payments to be made in aid of railways were never intended to be taken out of pre- sent balances of assets, but that they were to be deducted as they be- came due from the receipts of future years. And this is exactly what has been done, keeping in mind what I have said as to our issue of annuities. I can best support my position by quoting from a speech delivered by the Hon. Edward BUke when the House was in committee on the Railway Resolutions, and reported in the Globe of February 23rd, 1872. Mr. Blake said :— All that was wanted was to create the fund. Not a shilling of it could be s[)ent without the sanction of the House. The Grovernment did not consider the addition of $400,000 sufficient, and therefore the question the} had to consider was the best way most consistent with the preservation of the surplus to provide a sum sufficiently large to enable the Government to carry out the spirit of the Railway Act. They considered that the plan of granting an annuity of $100,000 a year for twenty years was the most economical and satisfactory plan that could be devised. The special funds of the Province alone would more than pay the $100,000 a year without touching the surplus. This one extract of itself, taken from such high authority, it seems to me, proves conclusively the truth of our contention. The $500,000 Dominion Bonds. The last item of our receipts to which I will refer, namely, $500,000 received from the Dominion Government, calls for some special remark. Our expenditure for the year included, as I have said, some very large items, special and exceptional in their character. We paid, for example, $100,000 to Toronto University, being part of the $160,000 unani- mously voted to it by the Housd to assist in restoring the building, which was partially destroyed by fire. We also paid $47,115 to the municipalities on account of the Land Improvement Fund, and $32,760 13 to County Houses of Refuge. "We loaned $63,000 to different munici- palities on drainage debentures. The sum given to the University I might call an emergency expenditure, — the first, and we sincerely hope the last, of the kind ever to be made by the Province. The payment to the municipalities on account of the Land Improvement Fund is an advance made for their benefit and relief, fcj which the Province will be recouped when the open accounts between the Dominion and the Pro- vinces are adjusted. The payment to the County Houses of Refuge is also new and exceptional. Our expenditure on capital account on the new asylums at Orillia and Mimico and on the new Parliament Build- ings was also exceptionally large, reaching in all $368,937. Because of all this extraordinary outlay we asked the Dominion Government to make to the Province a piyment on account of the debt due us. The matters in dispute between the Province and the Dominion have been narrowed from time to time, and there is admittedly a large sum due us. Our request was met in a friendly, business-like way, and we promptly received from the Dominion $500,000 in 4 per cent, bonds, which we disposed of at par. We disposed of them at par without pay- ing a single dollar by way of brokerage or commission. While on this subject, I may say thit for obvious reasons we have made but little further progress in the settlement of our accounts with the Dominion. I am glad to say, however, as I said last year, that there is no attempt in any quarter to defeat or postpone a settlement. When the present disturbed condition of aff^iirs at Ottawa and Quebec comes to an end, real and, I ha\ b no doubt, satisfactory and rapid pro- gress in the direction of a full settlement will be made. The Liquor Ligbnsb Fund. Our receipts for the year from liquor license fees amounted to $298,- 184. Our estimate was $300,000, and not $310,000 as it was printed owing to a clerical error. The number of licensos issued during the last license year was twenty-two less than that issued during the previous year, and in all probability there will be somewhat greater reduction during the current year. The Province took to itself control of liquor licenses in 1876. Since that date it has received as net revenue from licenses $2,630,515, or $164,407 per year. It has paid to the munici- palities during the same period $3,885,922, or $242,870 per year. The ^^ 14 municipalitiea have therefore during the last sixteen years received on an average $78,463 more per year than the Province from this source. Mr. Clancy. — fiut you took more from the municipalitias. Hon. Mr. Harcourt. — I am speaking of the fact as it is found — of the record as I find it. The temperance people, I would say to my friend, have time and again expressed their belief that it would be Ibetter for all concerned if the municipalities got nothing from licenses. (Applause.) In answer to some press criiicistn) arising out of complaints made by a few municipalities as to their share of the license fees, I last year pointed out that the municipjtl revenue from licenses had during recen t years been steadily increasing ; also that their percentage of increase had been more than double that of the Province. Without question in our larger cities licenses have become much more valuable to the holders year by year, and it may be that the time has now come when we should consider the propriety of raising the fee and thereby increasing our revenue. The fees paid in some of the American cities are considerably larger than those we exact. It has never been considered inappropriate that the State should ask the dealers in Mquors as well as the consumers to contribute to the cost of government. If the liquor traffic is only one-half as responsible for the serious cost incident to the Administration of Justice, as some allege it to be, then these license duties which we are discussing might be measurably in creased. Local Option. It will be remembered that nineteen municipalities, availing themselves of our license legislation of 1890; passed local option by-laws for prohibiting the sale of liquors by retail. Our Act of 1890 (53 Vic, chap. 66,) simply restored to the munici. palities the powers they formerly possessed, re-enacting as it did pro- visions which were in force at the time of Confederation as a part of the Consolidated Municipal Act, and which were also contained in the Tavern and Shop License Act of 1868, but which were afterwards -omitted in subsequent consolidations of the Municipal and Liquor License Acts, similar provisions as to local prohibition being contained 18 in the Temperance Act of 1864 (Dunkin Act), which act had been re- f)ealecl, where not in force, by the Canada Temperance Act. The validity of the clauses of our statute on which the local option by-laws were based being questioned in the Courts, Chief Justice Gait quashed some of these by-laws, and held that the Legislature had no authority to empower the municipalities to pass them. Our Act of last session respecting local option (54 Vic, chap. 46) explained the Act of the preceding session and provided for a reference of the question of its validity, construction and eifect to the Court of Appeal for Ontario, under the authority of the Act for expediting the decision of constitutional questions. The opinion of the Court of Appeal was given in September last. Chief Justice Hagarty, after re- citing that the municipalities had from an early date, at least as far back as 1849, the power to regulate tavern licenses and to limit their num- ber ; that section 249 of the Act of 1866 contained a clause identical with the prohibitory clause (clause 18) of our Act of 1890 ; that a simi- lar clause in like terms is found in the Tavern and Shop License Act of 1869; that it was omitted in the Act of 1874; that municipal in- stitutions are in the class of subjects within exclusive Provincial regu- lation ; that in our Act we expressly disclai Jied any exercise of juris- diction beyond the revival of provisions in force at date of Confedera- tion ; that clause 18 of the Act of 1890 (the clause in question) applies only to places where neither the Dunkin Act nor the Canada Temper- ance Act are in force, concludes that the Legislature had jurisdiction to pass it. And thus another disputed point of jurisdiction as to powers of legislation in the matter of liquor licenses is happily set at rest. While this local option movement has as yet had no effect upon our license revenues, we need not be greatly surprised if in the near future it will cause a considerable shrinkage. Although the question may be considered from two widely difier- ont points of view, namely, that of the financier and that of the moral, ist, still I think f fairly represent the views of the whole House when I «ay that if local option will secure a substantial, abiding progress in the oause of temperance and morality, then we will all rejoice in spite of the temporary loss of revenue which it would entail. A sign of the times is discernible in the fact that very marked attention is being given to this subject in the North- West Territories H 16 and that a license law very like our own, if not a transcript of it, ha» been enacted there this very year. The ratepayers came to the conclusion that under the old state of things the law was not only not observed, but held in contempt, and smuggling encouraged as well ; that their experience of prohibition had resulted in dismal failure, and that the only remedy was a system of well-regulated license. Interest Receipts. The total of our receipts of interest is less than we estimated. We received all that we estimated as interest on ''capital held an j on debts due by the Dominion to Ontario." The falling off is in the item of in- terest on investments, and is partly explained as follows : — we usually receive our payments of interest from Ottawa about the 1st of January and the 1st of July each year. In 1891 it was not received until March 21 and August 31 respectively, and this represents a loss of interest to the amount of $2,400. Wb have loaned to the municipalities the large sum of $524,155 to assist in drainage, and the interest we received last year on this large investment was much less than we expected, We could have increased this last receipt by pressing the muaicipilities, and during this year I intend to collect the arrears as closely as possible. Statement op Expenditures, 1891. Civil Government $221,126 28 Legislation 123,601 03 Administration of Justice 398,968 79 Education 645,115 23 Public Institutions Maintenance 820,616 68 Immigration 6.628 94 Agriculture 149,535 42: Hospitals and Charities, including County Houses of Refuge 167,742 8^ Repairs and Maintenance 69,667 89- Public Buildings 412,243 77 Public Works 35,126 6r Colonization Roads 98,312 31 Charges Crown Lands . 171,666 47 Refunds 30,563 74 Miscellaneous 87,916 07 3,428,731 68. 17 pt of it, ha» Drainage Debentures 50,887 83 •• " (Tile) 12,000 00 Railway Aid Certificates 262,179 74 Annuity " 69,200 00 New Parliament Buildings 208,348 43 Land Improvement Fund (Special) 47,111 87 University of Toronto 100,000 00 Stationery purchased 917,179 80 •* distributed 12,076 28 5,103 52 $4,163,563 07 I will now, Sir, briefly comment on the expenditures of 1891. The Legislature voted for the year's supply $3,622,427. Our ordinary ex- penditure under the Supply Bill was $3,428,731,80 that of the money voted to us for the year there remains unexpended $193,695. We have therefore kept within the grants wherever possible, and have in no instance abused the liberality of the Legislature. As will be noticed, our ordinary expenditure includes eleven leading services, viz : — Civil Government. Legislation. Administration of Justice. Education. Public Institutions Maintenance. Hospitals and Charities. Agriculture. Repairs and Maintenance. Public buildings. Public works. Miscellaneous. And in nine out of these we have spent less than we were entitled to spend. In only two of them have we over-expended, viz.. Legislation and Agriculture. The over-expenditure on Legislation being only $886, I may say that the only Department in connection with which there has been any appreciable over-expenditure is that of Agriculture. We paid for the administration of criminal justice $176,293, a sum largely in excess of our estimate. I may state here incidentally that the Province pays mqre for this service than the counties. For ex- ample, while the counties paid during 1890 for criminal justice, gaol 2 (B.) 18 . salaries and maintenance of prisoners $105,526, the Province contri- buted ei42,091. Legislation Concerning New Parliament Buildings. We spent last year on the construction of new Parliament Buildings $208,348, the largest sum spent any single year for that service. Thus far we have spent on these building's $802,297. Eleven years have passed by since this House committed itself to the work, and although each year thereafter a small expendidure was incurred in connection with it, the first large expenditure was not made until 1887. In that year we spent $164,678 In 1888 •' 159,203 In 1889 '• 143,167 In 1890 " 142,102 In 1891 " 208,347 I urge honorable members not to lose sight of the very important fact that during each of the last five years we have spent these large sums for this service, that it is in every sense an exceptional outlay, and that not a dollar of it is fairly chargeable against our ordinary yearly receipts. I must remind the House that in the Act which provided for the erection of new buildings, paesed in 1880, ii was recited that these buildings we now occupy were not adapted to our needs, and that our occupation of this very valuable and, for our purposes, undesirable site, blocked important commercial city improvements urgently demanded. The Act in question set apart certain lands which were to be sold or leased, the proceeds thereof to form the "Parliament Buildings Construc- tion Fund." The lands so set apart were, (1) the site we now occupy, containing more than 9^ acres, having a frontage of 964 feet on Front street and a like frontage on Wellington street ; and (2) a block of 80 acres, extending to the westerly limits, of the city and lying north of the Grand Trunk Railway, reserving, however, the six acres used by the Mercer Reformatory. Now, what have we sold? In 1886 and 1887 we placed upon the market, selling it by tender after careful advertisement, parts of this block of 80 acres. We sold 52 acres of it at prices then considered very satisfactory, realizing therefrom $167,105. 19 rince contri- And this is all that we have sold. There remain still unsold 21^ acres, as well as this valuable block we are now occupying, which we have not aS yet offered for sale. While, therefore, we have spent up to the close of last year on new Parliament Buildings construction the large sum of $802,297, we have received only $167,105 from the fund which was specially and by Act of Parliament set apart for their erection. We have spent $635,192 more than we have received. The large sum of $635,192 has been taken from our ordinary receipts of the last five years and spent in the erection of new buildings in the park. I know, Sir, that our opponents in this House will feel bound to remember these facts when they come to deal with our financial operations of the last five years. We have the fullest right to claim, and we do claim, that the Treasury this hour is entitled to a credit sum amounting to the value of the site we now occupy, in addition to the value of the 21^ acres referred to and yet unsold. I can only give an approximate estimate of what this item of credit should be. The Commissioner of Public Works as long ago as 1880 stated in this Ohamber that experts valued the site of these old buildings at sums ranging from $240,000 to $500,000, and although real estate is now, the whole Province over dull, inactive and almost unsaleable, every one will admit, considering the bright prospects of this promising city and the central location of the property, that it is worth at least $450,000. Last year the Board of Trustees of the University invited ofiers for the purchase of the old Upper Canada College block on King Street,, which contains nearly nine acres. Among the offers was one for $390,- 000 and another for $400,000. The Board declined all the offers. From this we may safely infer that they can reasonably expect, if they decide to sell, to get for it at no distant day at least $500,000. The difference in value between the two blocks, this having the greater acreage, cannot be very large. The twenty-one and a half acres in the western part of the city will in all probability soon be readily saleable, and should bring at least $75- 000. These two amounts then, namely, $450,000 and $75,000, must be placed to our credit by anyone who would fairly pronounce upon our ■ financial operations of the last five years. As I have previously said, we received during the year from the' Dominion on account of the debt due us, $500,000, a sum representing^ 20 very closely the value of the two properties we still own and which were by statute set apart to be sold and form part of the Parliament Buildings construction fund. If, then, we have diminished our cash surplus to the extent of $500,- 000, we have in its place unquestionably a full equivalent in these two properties. The New Buildings. Before I leave this question I may fittingly make some general obser- vations as to the new buildings themselves, which are now nearing com- pletion, especially since this is the last session to be held in these old buildings, the history of which is almost coeval with the history of the Province and around which cluster so many "fading legends of the past." While we will gladly take leave of these old and dingy rooms and eagerly welcome the day when we will be summoned to the spacious and elegant building in the Park, I can well understand that those like your- self. Sir, who have served the Province for several Parliaments, will ever and anon find themselves brought back in thought to this old Ohamber by a thousand pleasant memories, recalling this or that excit- ing division or warm debate. There is now universal agreement the whole Province over as to the necessity for new buildings, and it is a matter of general wonder, the sound condition of the finances of the Province being remembered, that their erection was so long delayed. For many years we have been incurring serious risk in the matter of the preservation of public dv. ?uments of untold value, while from a isanitary point of view these old buildings were long since condemned. in point of economy as well the change was desirable, since year by -year we have been compelled to spend very considerable sums in re- |)airs of the old buildings, as well as for rent paid for additional depart- mental offices. During the last ten years, for example, we have paid for repairs $73,112, and for rent $14,400. I confidently predict that when we meet in the new buildings a year hence we will all be greatly pleased with their adaptability in all re- gards to our varied needs ; that we will find that in the all-important matters of light, heating and ventilation the very best results have been attained, and that as to materials, finish and workmanship generally, we can without fear invite closest inspection. Their architectural j>eauty even now, in the absence of the porches which will ornament 21 the three main entrances (and these will lend to them additional finish and symmetry) is a matter of general remark. All this can be said of but very few similar buildings. Indeed it is but seldom that we find a large public building which is not marred in some way by serious blemish or defect. We have spent, as I have already said, On the new Parliament buildings $802,297 On the eight new Asylum Cottages at Mimico 444,212 And on the new Asylum at Orillia 386,550 or taken altogether, the large sum of $1,633,059. I take this, the earliest opportunity afforded to me during the session, to invite the Public Accounts Committee to scrutinize ever^ dollar of this large expenditure as closely as the most rigid financial purist could desire. I promise beforehand that it will be found that there has been no unfair enrichment of contractors, no scamped work, no manipulation of tenders, no favouritism, no extras, no questionable dealing of any kind, but, on the other hand, that there has been an attempt, earnest, consci- entious, successful, to secure the best of work at the lowest possible cost to the Province. I repeat that it is but seldom that all this can be be said in the case of large public works. I am confident also that when the last day's work is done on the new buildings and the last pay-sheet certified, that there will be a general feeling in the Province of satisfaction and surprise as well that they have been finished at so small a cost. I know that honorable members opposite, who recently expressed the fear that their cost would greatly exceed the appropriation, will join in the general rejoicing, and that they will give full credit to the archi- tect, who has superintended the work of construction at every point, as well as to the Commissioner, who has devoted himself with his usual zeal, energy and success to this great work. We have voted for the construction of the new buildings $1,250,000. Every part of the work is now under contract. The heaviest contract of all, namely, that for the masonry and brickwork, is completed, save as to the porches over the entrances. The slate roofing is nearly finished, and satisfactory progrf>88 is being made with the plastering, plumbing and interior wood- work. I am, therefore, in a position to be able confidently to say, and '^ I speak now as the acting Commisisoner of Public Works, that the total cost of the building will be less than the amount we have voted. No Extras, I have stated that there would be no extras. This of itself entitles the Commissioner, the architect, the contractors and all concerned to the highest possible praise. As to this, I will read a letter from Carrol and Vick, who took over the contract for masonry and brickwork, origin- ally let to the late Lionel Yorke, the amount of this contract being $671,250: [Copy.] Queen's Park, Toronto, Sep. 15, 1891. To the Hon. the Commissioner of Public Works : Sir. We have received yours of the 10th inst., re clause in contract relating to extras, and in reply would say that the plans are so clear that there is no room for extras, and we ever keep in mind that in case we should ever think we were entitled to such in adjusting points, we would at once apply to the Commissioner of Public Works for an order before proceeding ; ttnd further state that we do not expect any sum more than the amount agreed upon. We are, sir. Yours obediently. Signed R. Carroll .\nts '." to-day are much wider than those of ten years ago. Within the pi riod named there has been great educational growth in all directions. The number of students attending the Pro- vincial University ir. l88l was 320. and in 1891, 504. In the course of haXi an hour's d nve in the neighborhood of Queen's 2^ Park in this city, you will notice in close proximity a series of im- posing buildings, all devoted to educational purposes, of which any city or Province might well be proud. Prominent amongst these is the Pro- vincial University, in the vigorous growth of which we all rejoice, which stands as a magnificent centrepiece, unsurpassed for its architectural beauty and symmetry, while clustered around it and co-operating with it you will see half a dozen colleges, well equipped, with an over-in- creasing roll of students, exerting widest influence over the thousands who leave their halls to take high part, let us hope, in the victories of peace. You will at once say, what magnificent opportunities are here afforded for higher learning ! Surely this Province is singularly rich in its educational equipment. And yet this is by no means the limit of our educational wealth, since in other parts of the Province there are similar institutions doing similar work. Our general educational policy has con- tributed in a marked degree to this bright result. Our grants, increas- ing year by year, to Public Schools and High SchooLn, Normal Schools and Training Colleges have materially aided in building up our Universities. To such an extent are their interests and f urtunes interlaced and bound up together that injury to the Public School means harm to the Univer- sity, while an impetus given to Public School work means a correspond- ing advantage to the University. As the Public School doors close on their graduates, the doors of the High Schools swing open to welcome them ; the graduate of the High School is the matriculant of the Univer- sity. The University graduate proceeds to the Training College and thence to the Principal's chair in the High School, while the High School gradu- ate takes a course at the Model or the Normal School, and, leaving them^ takes charge of a Public School. And thus, as far as this Province is concerned, because of their inter- dependence and the symmetry of our system, the cause of the Public School and of the High School is one, and our grants to the cause of higher education promote the efficiency of our Public Schools. While, of course, our duty as representatives of the people chLfly concerns primary education, (the obligation of the State to the child — I speak in a general sense — ending with primary education), yet. fortu. nately for us, we need not be too unxious in the nice balancing, ot grants as between primary and secondary education, since, as I have attempted to show, a grant to either stimulates the whole system. It m is to be hoped that our task in the matter of higher edncation will be lighteued, as has happened elsewhere, by the generosity of private- citizens. Our University is even now much indebted to a few large- hearted, thoughtful men, whose handsome donations to its coffers have helped on its widening work. In this regard McGill College, Montreal, has been exceptionally fortunate. During the last five years, for example, and her good fortune dates from a quite earlier period, she has received through private bene- factions the large sum of $1,002,547. I have at hand a statement in detail of the several donations. While McGill College has received from private benefactions over $1,000,000 during the last five years, our Provincial University has- received, I regret to say, less than $150,000 in ten years. Hospitals AND Charities. I have referred to the expenditure on education as a growing expendi- ture, and to the increase in connection with it as an automatic increase. The same remark applies to other expenditures. Take, for example, that on Hospitals and CbaritieEr, and once more I will refer, for purposes of comparison, to the last decade. In 1882 we spent on Hospitals and Charities $78,095, and in 1891, $167,742. We have more than doubled the expenditure in a single^ decade. No one proposes to reduce the grants Asylums. Another growing expenditure is that in connection with our asylums. We have good reason to be proud of our care of the insane. We have spent, and are now spending, large sums in the erection of cottages specially designed and in every way suitable for asylum needs. The iucreasing number of the insane compels us to make immediate provision for still further accommodation. During the year ending Sep- tember 30th, 1891, there were 262 more patients admitted than during the previous year. Ths average daily number of patients in residence Ust year was 3,506, while for the previous year it was 3,266, an inoreaso of 240. We have provided in the new C3ttagea at Orillia and Mlmico beds fo 950 patients. 26 The cost of maintenance of oar Public Institutions is very large, and is increasing year by year. No other Province assumes this burden to ■anything approaching the same extent. In the great majority of the States to the south of us a large part of the burden is shifted to the municipalities to which the patients belong. We paid for maintenance of Public Institutions in 1887 $650,744 1888 721,602 1889 728,909 1890 769,905 1891 820,516 ^eing an increase of $169,772 in five short years. The yearly reports clearly show that the per capita cost of maintenance is noticeably less than that in similar institutions in the United States. New Services and therefore Increased Expenditure. To speak in general terms of increased expenditures without any refer- ence to their nature or necessity is misleading and unfair. From time to time new services have been demanded of the Province, and it has assumed new functions. The Legislature, urged on by public opinion, has imposed new and heavy obligations on the Province, and thus we have been compelled to bear burdens which hitherto had fallen on the municipalities or private individuals. We all know that each session new grants are persist- ently and earnestly asked for, and that it is at times difficult to resist pressure in this direction. Considerations such as these explain increased expenditures and compel every candid man not only to justify them but also to frankly admit that the business affairs of the Province have always been con- ducted in a most economical manner. In leaving this branch of my subject I will remind the House that "these increased grants to Education, Hospitals and Asylums, Public Insti- tutions and Agriculture are substantially grants to the municipalities in relief of their local taxation. The widely beneficial results of this very liberal measure of Provincial aid are manifest. It has been a powerful factor in building up our school system, in originating and promoting better methods of agriculture, and in providing humane and intelligent treatment for the sick, the blind and the insane. 27 Summary of the Year's Transactions. At the commencement of the year we had at our credit in the banks $44,792. We received from all sources during the year $4,138,589. Our total expenditure was $4,163,563, and at the end of the year we had on hand in the banks $19,818. Mr. Clancy. Hear, hear. Hon. Mr. Harcourt. My honorable friend I am sure is echoing the opinion of all of us, when by his expression of "hear, hear" he congratulates the House upon the fact that there is one Province at least that is economically governed — a Province which has for twenty long years uninterruptedly enjoyed Liberal rule. (Applause). When it is remembered that we expended $620,591 in Public Buildings alone, thus adding that large sum to our permanent capital investments, that we gave $100,000 to the University, that we spent $98,312 on Colonization Roads, that we loaned $62,887 to some municipalities for purposes of drainage, and advanced ^47,111 to other municipalities on account ot Land Improvement Fund, that $311,000 went for railway aid, that our receipts exceeded our esti- mate, and that we expended less than the House authorized us to ex- pend, it will be admitted that the general result is exceedingly satis- factory. A Year's Transactions. A fair summary of the year's transactions may be given in a few words. Our ordinary receipts were $3,327,070. Add to this cash on hand at the beginning of the year, viz., $44,792, and we have $3,371,- 862. Our ordinary expenditure, in which I do not include the $37,500 given to County Houses of Refuge, was $3,391,231. Therefore our ordinary expenditure exceeded our ordinary receipts by the very small sum of $19,369. But we must remember that of this so-called ordinary expenditure a sum not less than $412,243 was spent on Public Buildings, and that no less than $160,586 was spent during the year on new buildings at Mimico and Orillia. Treating this Mimico and Orillia expenditure as capital and not as ordinary expenditure — and this is what is done by other Governments — we had a surplus on the year's transactions of $141,217. Our railway expenditure is rapidly decreas- ing; our expenditure on Public Buildings will be much less in thefutur^ l&i! 28 th in it has been in the p.)st ; we have almost completed our new Parlia- ment Buildings ; our controllable expenditures are kept down to the lowest possible figure ; and therefore I say that we can all take a very cheerful view of our financial outlook. No British colony, no other Province, can present a balance sheet one-half as favourable. Our Assets and Our Surplus. ASSETS. 1. Direct Investments:— Dominion 6 per cent, bonds 82 X), 000 00 Market value over par value 6,000 00 Drainag^e, 5 per cent, debentures invest- ed 3l8t December, 1891 237,243 60 Tile Draina^re, 5 per cent, debentures in- vested 3l8t December, 1891 93,553 96 Drainage works— Municipal amounts... 193,357 21 2. Capital held and Debts Due bt the Dominion to Ontakio, bearing Interest: U. C. Grammar School Fund (2 Vict., • Cap. 10) 312,769 04 U. C. Building Fund (18 Sect., Act 1854) 1,472,391 41 Land Imp)-ovement Fund (see Award) . . 124,685 18 Ontario share of Library do . , 106,541 00 Balance of unpaid Subsidy &other credits 1,590,519 37 $205,000 00 524,154 77 3,605,906 00 Common School Fund :— Collections by Dominion I,620,9.i0 24 Collections by Ontario, after deducting Land Improvement Fund, and 6 per cent, for collections to 31st Dec, 1889. 936,729 10 Ontario's share according to population, 1891 Less Djminion bonds issued in 1891 in part payment of above S. Mortgage re Toronto Astluh Lands Sold 4. Bank Balances— Current Accounts... Total 2,457,679 34 1,441,882 90 6,047,788 90 600,000 00 $729,154 77 4,547,788 90 6,316 0& 19,818 oa $5,303,076 67r 29 LIABILITIES OF THE PROVINCE AT PRESENT PAYABLE. 1. Balance Ddk to Mcnicipalitik8 re Sur- plus Distribution Jl,291 30 -2. Land Impkovement Fund :— Balance due to Municipalities under 45 Vict. Cap. 3 and 49 Vict. Cap. 6. . . 13,256 57 Balance due to Municipalities under 64 Vict, Cap. 9 6,593 06 9,849 62 3 . Quebec's Share op Collections by On- tario, c: Account of Common School Lands in 1890-91 :— Collections on lands sold between 11th June, 1853, and 6th March, 1861 $15,373 40 Less 6 per cent, cost of managrenient 922 40 14,4(51 00 Less one quarter for Land Improve- ment Fund 3,612 75 10,838 25 Collections on lands sold since 6th March, 1861 4,994 15 Less 6 per cent, cost of management . . . . 299 65 4,694 50 15,532 75 "Quebec's proportion according to popu- lation, 1891 6,419 92 Total 17,56084 Surplus of Assets after deducting Liabili- ties presently payable $5,285,515 83 A word as to the assets of the Province. These are so well known and iiave been the subject of such frequent debate that they require but little «xplaiation. We still have the Dominion 6 per cent, bonds to the amount of $200,000. These mature in March, 1893. We have added during the year nearly $7,000 to our drainage investments, which now aggregate $524,155. The trust funds, the nature and origin of which have been so often explained, remain unchanged in amount, and the -Common School fund, the particulars of which we are all familiar with, is slightly increased, because of the fact that it is this year divided on the basis of the recent census. The amount of the balance of unpaid subsidy and other credits, as appears in the schedule in our hands, viz., i^l,590,519, remains as it was last year. All told, these assets amount to $5,303,077. From this sum we deduct certain small balances due to the municipalities on account of the Land Improvement Fund, as also <^uebec'a share of our collections on account of the Oommon School lands for two years past, in all $17,560. We had in hand bank bal- 30 ances to the amount of $19,818, so that our surplus at the end of the year, after deducting all liabilities now payable, amounted to $5,285,- 515. The reality of this surplus can be no longer seriously questioned. It was at one time contended that, while we could expect to receive interest from these trust funds, we could never get possession of them or control them. They have always yielded a rich return by way of in- terest, and there was no good reason why we should ask to have them handed over to us. And yet the suggestion came from the Finance Minister at Ottawa two years ago that the requisite legislation should be had in order that the Dominion might hand th3m or an important part of them over to us, so that this contention can no longer be maintained. On one occasion when this question was under discussion in this House, when we were claiming that these assets were real and tangible^ my honourable friend who leads the Opposition said, " Why don't you get a check for this 1" A few weeks ago, acting for once, at least, on his suggestion, we asked for and promptly received a check for $500,000 of it. It should be, and doubtless is, a source of great satisfaction to all of us, regardless of mere party considerations, to know that the Province has this large surplus upon which we can readily and at any time draw in cases of emergency. The Question op Assets. Were I to follow, in presenting a statement of the assets of the Pro- vince, the practice of large financial corporations such as banks and in- surance co^npanies, a practice to which no business min ever takes ex-^ ception, then our assets would be more than double the sum I have named. Our large financial corporations include in their assets not only the buildings they own, but even their oilice furniture. Our Schools, Colleges, Asylums and other Public Buildings are indispensable and aa necessary to the Province as are the offices they occupy to commercial corporations. In connection with our public buildings we have mor& than 2,000 acres of land, some of it, especially that which is situate ia this city, very valuable. A careful valuation of this land alone, re- cently made at my requebt, shows it to be worth more than a million and a quarter of dollars. Our Public Building have coat more than six and a half millions of dollars. The unpaid balances due to the Province on sales of Crown lands amount, as I stated last year, to upwards of four 31 and a quarter millions of dollars. If we were then to present a strictly commercial statement we could reasonably claim that we have assets, and they are as good as those of any commercial corporation on the con- tinent, to the amount of at least ten millions of dollars, and that our sur- plus is twice as large as we have ever claimed it to be. • The Financial Position op the other Provinces. If we look about us, a glance at the sister Provinces will give us additional fulness that we have persistently adhered the finances of cause for thank- to a policy of rigid economy. The Treasurer of more than one of these Provinces each year laments his inability to see a way of escape from the " gloomy groove of annual deficits." The large andconstantly increasing debt of Quebec is from an Ontario point of view alarming, and all parties there seem to take it for granted that sooner or later the Federal Government must come to the rescue. Prince Edward Island has drawn upon capital ac- count and is still behind. Nova Scotia and New Brunswick have in- curred large debts, and they are once more agitating for 'better terms. Nova Scotia urgently asks the Dominion to relieve her of liabilities to the amount of a million and a half of dollars. New Brunswick, with a population of only 321,294, had at the close of last year a bonded debt of $2,342,000. And where, Sir, we may well ask, is this to end? I do not forget that these three smaller Provinces with an aggregate popula- tion of only 880,905, or two-fifths that of Ontario alone, maintain separate Legislatures, each of them having a second Chamber, and that because of this the administrative work is trebled, and the expenditures- on Education, Administration of Justice and Public Works are very much larger than would otherwise be necessary. At the same time we may well, nay, we must insist, that any settlement of these difficulties as concerns the future — I do not speak of existing obligations, whether by means of increased annual grants to each of the Provinces, having strict regard to population, or otherwise — should be a comprehensive settlement, arrived at after a careful study of the whole situation,, altered as it is in so many regards since Confederation; that it should be an absolutely final settlement, made so by Imperial enact- ment ; that not another dollar of the Federal treasury should thereafter be spent in " special grants " or " better terms," and that it should be in. '^ 88 all regards fair (we ask no more) to our own Province. In this way, «nd in this way only, will the Provinces become self-reliant, make the most of their own resources, and avoid extravagant expenditures. I do not lose sight of the fact that a general increase of Provincial subsidies means an increase of the Federal debt, as well as an increase of the already serious burden of interest to be borne by the Federal taxpayer, and that of these increases Ontario must bear by far the greater half of the burden. If we cannot get an exact measure of justice, we must ac- cept that settlement which will most nearly approach to it. The giving of special grants — in reality, as has been said, increased subsidies in disguise — to this and to that Province, has stifled self-reliance, en- couraged needless expenditures and fostered discontent. Provincial Subsidies. Every Province save our own has profited by this departure from safe and sound principles, and each occasion of profit to them means corresponding loss to us. What is wanted now is to get back to first principles and firmly to take the position to which, when Confederation was brought about, all parties were pledged. Those who guided public opinion at that time, and whose impassioned logic contributed so much to the accomplishment of Confederation, as they " dipped into the future " and discussed the many possible difficulties which it was feared might arise, stated confi- dently that in their scheme they had provided the necessary safeguards. Has time fulfilled their promises t The difficulties then predicted, as well as others unforeseen, have confronted us, and the promised safe- guards have proved shadowy and unreal. With the permission of the House I will briefly quote from two of the Fathers of Confeder- «ration, whose opinions then, as always, commanded universal attention. The Hon. Mr. Brown, on the 8th day of February, 1865, when the Con- federation scheme was under discussion in Parliament, in dealing with the financial aspect of the question, said : — "Let this, too, ever be kept in mind that the $2,630,000 to be dis. tributed to the Local Governments from the Federal Chest is to be in full and final extinguishment of all claims hereafter for local purposes ; and that if this from any cause does not suffice, the Local Government must supply all deficiencies from a direct tax on their own localities." 33 And the Hon. Mr. Gait, speaking also in Parliament in the course of the same debate, said : — *' A subsidy of 80 cents per head was provided, based upon the population according to the census of 1861. The amount, if taken upon the basis of the present population, would undoubtedly be considerably less, and it must be observed that the agreement does not contemplate any future extension of this amount. It is to be hoped that, being in itself fixed and permanent in its character, the Local Governments will see the importance — I may say the necessity — of their exeicising a rigid and proper control over the expenditure of their several Pro- vinces." Here, Sir, we have a leading Liberal and a leading Conservative statesman in earnest words assuring Parliament that under the subsidy scheme, as adopted in the Act of Confederation, all Provincial claims for local purposes were fully and finally extinguished, that the subsidies therein granted were fixed and permanent, and that no future increases were contemplated. Had the wise policy outlined in these two extracts been rigidly adhered to, the finances of the Provinces and of the Domi- nion as well would now be in a far more satisfactory condition. I say all this, throwing aside all partisanship, recognizing as I do that the whole question is one of extreme difficulty, that upon its successful solution depends in no small degree the stability of Confederation itself, and that therefore, the consideration of it should not be *' poisoned by the virus of party feeling." We can also, with boldness, invite comparison with any one of even the most favoured of the States nearest us. Take the great Commonwealth of Pennsylvania for example. It has a population of 5,258,014, and its gross revenue for the year ending November 30, 1890, was $8,625,919. It gives very liberal grants, as we do, to Chari- ties, Hospitals, Common Schools and kindred objects. It pays its judi- ciary over $500,000 a year, an expenditure with which we are not bur- dened. At the same time it resorts to several modes of taxation of which the peoplo of Ontario have had happily no experience. For example, the taxes it collects on corporation stock and limited part- nerships, on personal property, on bank stock and foreign insurance companies, exceed our total revenue. And yet this favoured Common- wealth is compelled to devote oaie-fifth of its whole annual revenue to a sinking fund to meet interest on and to redeem the principal of its public 4ebt. Pennsylvania ppcupiej? deservedly a prominent place as one of 3 (B.) 34 the most advanced States of the Union. Were l to institute a com- parison with many of the other States of the Union as to finances, the result would be still more favourable to us. The Estimated Expenditure. And now only a few words regarding the finances of this present year. Our ( stimate for this year's expenditure is $3,472,237, a de- crease as compared with last year's estimated expenditure of about $20,000. It will be found to be a very liberal estimate. As we have done for the last seven consecutive years we will, I am confident, do this year : that is, we will not abuse the generosity of the House. On the contrary, we will keep well within the estimate. We spent : — 839,901 less than was voted in 1885. $259,238 less than was voted in 1886. $221,058 less than was voted in 1887. $118,767 less than was voted in 1888. gl78,425 less than was voted in 1889, $177,907 less than was voted in 1890, $193,695 less than was voted in 1891. The most noticeable feature in the estimated expenditure is that connected with our proposed addition to our Asylum accommodation. We intend to ask the House to gri.nt an appropriation for the erection of an Asylum at or near Brockville. The Provincial Secretary will at an early day fully justify our proposed action in this direction. There is a noticeable increase as compared with last year in the vote we ask for Agriculture. Large, representative and influential deputations have time and again strongly urged that an increased grant should be given to the Electoral District Societies. We now propose to grant to these societies, 87 in number, an increase of $100 each. In other depart- ments of agriculture we will ask for substantial increases. No words of mine are needed in justification of increases which will tend to pro- mote the vitally important interests of Agriculture. We ask also for an increased grant for Educational purposes, and here again I feel that words of apology would be out of place. The estimate of our receipts for the year is $3,266,572. I am confident not only that this is a f t 1 35 ire 386 Irt- rds tor lat >t8 a very careful and moderate estimate, but also that our actual receipts will, as has happened so often in previous years, by a considerable amount exceed it. ESTIMATED RECEIPTS, 1892, Subsidy Interest on Capital held, and Debts due by the Domin- ion CO Ontario Interest on Investments Chown Lands Dbpartmknt :— 81,196.872 80 Crown Lands Clergy Lands Common School Lands Woods and Forests Public Institutions :— Toronto Lunatic Asylum London " Kingston " Hamilton " Orillia Reformatory for Females " Boys. .. Central Prison $276,000 00 46,000 00 60,000 00 6,000 00 10,000 00 1,036,000 00 38,600 00 9,600 00 3,000 00 9,000 00 2,600 00 3,600 00 700 00* 70,000 00 320,000 00 1,100,000 00 Education Department Casual IRevenue Licenses) Law Stamps AlgomalTaxes . , Drainage Assessment Insurance Companies' AsseHsments. Removal of Patients 136,700 00 42,000 00 60,000 00 300,000 00 90,000 00 6,000 00 17,000 00 3,000 00 6,000 00 Total 3,266,672 80 A BitiuHT Future Predicted. I have attempted, Sir, to keep my statement altogether free from even the appearance of party controversy, in the belief that what the House defiired and the people expected from me was a plain account of our financial position. I expect, indeed I know, Sir, that the criticisims to follow will be made in the same spirit. I have no desire to conceal any- thing ; 1 have nothing to conceal. My whole life has been spent in this Province and I am proud of its position, consider it from whatever point I 36 of view you wish. We have demonstrated clearly that our people appreciate to the full, nay that they cherish and make the best possible use of their priceless right of self-government. The history of our muni- cipal institutions, the wonderful growth and success of our educational system, reaching and brightening through its expsnsiveness every home, even the humblest in the land, prove this most conclusively. My faith in our future is deep, loyal and abiding. The foundations for a career of uninterrupted if not of unexampled prosperity have been wisely and securely laid. The nice balance between a picayune, persistently parsi- monious policy on the one hand, which would check development, retard progress and discourage enterprise, and a policy of reckless prodigality on the other hand, which in its turn, while it would bring about momen- tary spasms of prosperity and create false hopes, would eventually end in humiliation and bankruptcy, has been most evenly preserved. No one will even for a moment underrate the importance of continuing a policy in the management of our finances which has led to such good results and which makes it possible for every citizen of the Province, even in these trying times, to refer with no small degree of pride to our financial position. I wish to say, with all the earnestness I can com- mand, that I know of no State or Commonwealth this wide world over which can this hour present to its people a financial statement more satisfactory, all things considered, than that of our fair Province, May this very desirable state of things long continue. May we be able always to encourage with liberal hand in a hundred different directions, as we have constantly done in the past, deserving institutions and under- takings. And may we always, in the ftice of this liberal expenditure, be able to point to ample surpluses, highest credit and unfailing re. . sources. How much all this is due to the political prescience, the timely caution, the untiring energy and great ability of the leader of this Gov. ernment this House well knows. The greatest boon I can ask for this Province I love so well is that his life may long be spared to shape its destinies and preserve its rights. And thus will his name, even to a greater extent than it is now, and in a woof of brightest and unfading colors, be inseparably woven into and become part of the history of this fair land. I move, Mr. Speaker, that you do now leave the Chair. (Applause.) APPENDIX. sly ilS Us. in Lnd Statement shewing amounts payable annually for Certificates, issued by the Treasurer of the Province of Ontario, for "Aid to Railways " and "Annuities." , Ykab. 1892 .. 1893. . . 1894... 1895.. 1896... 1897... 1898... 1899 ., 1900.. 1901.. 1902.. 1903.. 1904.. 1905.. 1906.. 1907.. 1908.. 1909.. 1910.. 1911.. Railway Aid Certificates. 141,218 84 141,218 84 141,218 84 141,218 84 136,210 64 115,658 78 87,145 78 72,713 39 66,640 38 34,834 97 18,677 37 10,209 69 b,794 40 9,794 40 9,794 lO 9,794 40 9,794 40 9,794 40 9,794 10 9,794 40 Annuities. Carried Jorwi'd 1,185,321 66 $ c. 66.200 00 66,200 00 66,200 00 66,200 00 66,200 00 66,200 00 66,200 00 66,200 00 68,200 00 66,200 00 66,200 00 66,200 00 66,200 00 66,200 00 66,200 00 66,200 00 66,200 00 66,200 00 66,';0f' 00 Cl>,200 00 Year. 1,324,0«>0 00 Brought forward 1912 1913 1914 1915 1916 1917 1918 1919... ... 1920 1921 1922 1923 192i 1925 1926 1927 1928 W20 1930 1931 Railway Aid Certificates. <5 Annuities. 1,185,321 56 9,794 40 9,794 40 9,794 40 9,794 40 9,794 40 9,794 40 9,794 40 9,794 40 9,794 40 9,794 40 9,794 40 9,794 40 9,794 40 9,794 40 9,794 40 9,794 10 9,794 40 9,794 40 9,094 80 5,596 80 Totals. $ c. 1,324,000 00 66,200 00 66,200 00 66,200 00 66,200 00 66,200 00 66,200 00 66,200 00 66,200 00 66,200 00 66 200 00 66,200 00 66,200 00 59,500 00 45,800 03 32,650 00 20,250 00 14,000 00 14,000 00 14,000 00 7,000 00 1,376,312 36 2,325,600 00 Provjncial Auditor's Office, ToBONTO, February, 16th, 1892. 0. H. SPROULE, Provincial Auditor. 38 Statement shewing amounts payable annually fot- Oertificatea Name of Railway Canada A.tlantic, Credit Valley .... Erie & Huron . . , Grand Trunk, G, B. & Lake Erie Grand Junction . . Hamilton & N. Western Belleville & N. Hastings North Simcoe . . . Kingston & Pem- broke Prince Arthur's Landing Victoria . Whitby, Pt. Perry & Lindsay Pt. Arthur, Dul'th &, Western Parry Sound Col- onization R^l- way Co Totals 141,218 84 1892. • 1893. S c. $ c 22,744 38 22,744 38 24,057 82 24,057 82 6,110 02 6,110 02 li,493 30 11,493 30 11,903 38 11,903 38 1,553 02 1,553 02 5,710 32 5,710 32 7,212 08 7,212 08 19,671 16 19,671 16 1,037 36 1,037 36 1894. $ c. 22,744 38 24,057 82 6,110 02 11,493 30 11,903 38 1896. $ c. 22,744 38 24,057 32 6,110 02 11,493 30 11,903 38 1896. 1,553 02 1,553 02 15,442 08 4,489 52 8,395 20 1,399 20 15,442 08 4,489 62 8,395,20 1,399 20 141,218 84 5,710 32 7,212 08 19,671 16 1,037 36 15,442 08 4,489 52 8,395 20 5,710 32 7,212 08 19,671 16 1,037 86 15,442 08 4,489 62 8,396 20 $ c 22,744 38 24,057 82 6,110 02 11,493 30 11,903 38 1,563 02 5,710 32 7,212 08 19,671 16 518 68 15,442 08 8,395 20 1,399 20 1,399 20 1,399 20 141,218 84 141,218 84 136,210 64 1897. $ c. 22,7 14 ^S 2i,220 70 iJ,llO OS 11,493 30 11,90b 38 2,855 16 3,606 04 19,671 16 4,260 24 8,396 20 1,399 20 115,658 78 NOTB.— Certificates falling due after 1903 : Port Arthur and Duluth Ry., do do Parry Sc^r^d & C.>hi. Ry. Co., Provincial Audit Office, Toronto, February 16th, 1892. 39 issued by the Treasurer of Ontario in aid to Railways. 1898. 1899. 1900. 1901. 1902. 1903. Totals. $ c. 22,744 38 10,378 93 $ c. 22,744 38 104 68 6,110 02 11,493 30 2,796 45 $ c. 22,744 38 $ c. 6,180 99 $ c. $ c. g c. 210,880 41 153,993 41 6.110 02 11,493 30 6,110 02 8,320 42 6,110 02 3,055 01 64,155 21 100,266 82 6,953 59 81.169 32 7,765 10 31,406 76 39,666 44 19,671 16 19,671 16 19,671 16 12,749 56 5,827 96 415 29 196,033 25 4,668 12 81,470 64 17,958 08 8,395 20 1,399 20 8,395 20 1,399 20 8,396 20 1,399 20 8,395 20 1,399 20 8,395 20 1,399 20 8,395 20 1,399 20 100,742 40 16,790 40 87,145 78 72,713 39 66,640 38 34,834 97 18,677 37 10,209 69 1,106,966 36 329 @ $699.60^$230,168.40. Last Certificate due 1st July, 1931. . 56 @ 699.60=$ 39,177.60. do do 0. H. SPROULE, Provincial Auditor. ¥■<- i