I p • * M DOCUMENTS KELATINO TO THE DBMAilD OF THE PPYINCE OP IjUEBEO FOK A RE-ADJUSTMENT OF THE SUBSIDY, QUEBEC: PRINTKI) AT THE " MOKNINO CHUONICLK " OFFIC^. 1883. ju o'^ 1 jui) DOCUMENTS RELATISO TO THE DEMAND OF THE PROYINCB OF QUEBEC KOR A RE-ADJUSTMENT OF THE SUBSIDY. ... • .' V , ; ' • • ' . • : • ' - • ■. > • . • '. . QUEBEC: PRINTED AT THE "MORNING CHRONICLE" OFFICE X883. . t- . • . • * • . •• • • ■• EXTRACTS PROM THE BUDGET SPEECH OV TlIK PROVINCIAL TREASURER OF OUEBEO, DELIVERED on the 16th FEBRUARY, 1883. PREHENT FINANCIAL POSITION. The receipts of the province from the 1st July, 1807, to the 30th June, 1882, have been $33,594,21)7.40, and the expendi- ture during the same period $33,968,413.00, giving an ex- cess of $374,115.60 in the expenditure over receipts. But during- these iifteen years veiy considerable sums havi^ been paid out of the ordinary receipts for services whieh do not strictly relate to ordinary expenditure. For instance there have been paid amongst others the fol- lowing sums : — Colonization $1,408,782 32 Immigration 387,800 12 Cadastres 019,229 11 Construction of Public Buildings 823,07 1 09 Construction of Court Houses and Gaols.. 440,174 41 Total $3,079,003 05 The amount paid for these services exceeds the deficit by $3,304,947.99. DuriuL,' the past oit-ht fiscal years, that is to say, since the first of July, 1874, the Province has also paid out of ordi- nary receipts the sum of $4,328,99o.73 for interest and sinking fund. There has btieu paid up to the JJOtli June last for railway subsidies $2,410,441.r)4, and for the construction of the Gov- ernment railway $12,o.']4,8ao.44, makini»- in all #14,045,271.- 92. The four loans ctFecti'd up to the latter date with $43,221.94 arising ironi insurances and the sale of mate- rials have o-iven as net i)roceeds, the; sum of $14,572,892.07. Thus the Consolidated Railway Fund shows an excess in expenditure of $872,379.85. By adding" to this expenditure for railways the interest and sinking- fund which we have paid during the same period, say $4,328,995.73, we have a total expenditure for this object of $19,274,267.05. This a very heavy sum, but even if it be so, the development of the country, which is due to the construction of our railways, has been of such great advantage to th ol" the lollowiiiji; items : — 1. Bahmce oi" the eoiisolidated dt'ht $ 8,'304,87«) 07 2. Temponiiy loan 600,000 00 3. Biilaiu-e ol' Quebec Central deposit 42^}/)\r) 14 4. Price of land purchased for railway... 100,(52') fid 5. Balance of award in fa\'or of Mr. Mc- Greevy 130,952 42 (>. Clitims for work on railway 45,000 00 7. Balnnce of railway subsiuies 1.725,757 45 8. Balance of estimated cost of Parlia- ment Buildini? 206,517 77 $11,801,245 04 Deducting. — 1 . Proci'eds of loan on hand on 31st Dec, 1882 $ 450.069 44 2. Portion of loan tempor- arily used 67,858 59 3. Balance in Bank on 1st July, 1882, — $370,- 172.78, less unpaid warrants— 140,632.37. 338,540 41 865,468 44 $10,035,776 60 By taking the balance of the first four loans, after deduct- ing the net proceeds of the sale of the rail w^ ay, and adding thereto the amount of the floating debt as shewn, we get the same result. 1. Balance of the fn-Ht four loaus !$14,854,220 67 2. Less net proceeds of salt' of railway... 7,000,000 00 Balance $ 7,254,220 67 3. Amount of the lloatinn- debt 3,081,549 93 $10,935,776 60 STATEMENT EOli 1883-84. W«} have now to examine^ the proposed expenditure for next year. I estimate the prt)bahle exixMiditure as ibllows : — [.— OKDINAllY I<:xrENDITUKE. PUJMiK; DEBT. Interest $ 8<:0,3G5 52 Sinkini»- Fund 81,090 83 Manag-ement 6,420 96 ^ 927,883 31 LEcaSLATION. Legislative Couucil : Sessional allowances and tra- vellins^- expenses $ 12,065 00 Salaries and Conting-encies 16,073 00 Legislative Assembly : Sessional allow^ances and tra- velling- expenses 34,500 00 Salaries and Contingencies 65,017 00 Library $ 3,000 00 Elections 3,000 00 Publication ol' tho l)o])atc.s of the Legislatnre 2,500 00 Clerk ofthe Crown in Chancery 800 00 Publication ol' the Statutes 4,500 00 Law Clerk 3,700 00 $ 145,755 00 (MVII. GOVERNMENT. Salaries $ 169,305 00 CTonting-encies 47,000 00 $ 210,905 00 ADMINISTRATION OF JUSTICE. Salaries and C()ntinL»('Ucies ^ 387,052 00 Police Offices 10,200 00 Kelbnuatory Prisons 47,500 00 Inspection of Public Ollices 11,000 00 $ 401,752 00 PUI3IJC INSTRUCTION. Superior Education i$ 78,410 00 Common Schools 160,000 00 Schools in poor Municipalities. 6,000 00 Normal Schools 42,000 00 Inspection 29,670 00 Pensions to teachers 8,000 00 Books for prizes 4,500 00 Schools for the Deaf and Dumb. 13,200 00 Council of Public Instruction.. 1,500 00 Commercial College of Var- ennes 500 00 Commercial Academy of St. G-enevieve 250 00 10 Journals of Puolic Instruction.. $ 1,250 00 Aid towards rebnildinj? the. Colioge of Rimouski 2,000 00 Do of Sto. Therese 2,000 00 Do of St. Francis 1,000 00 $ 350,280 00 LITERARY AND SCIENTIFIC INSTITUTIONS. Four Faculties of Medicine at Montreal $ 8,000 00 Societies at Montreal 2,350 00 Societies at Quebec 3,350 00 Tublishino- Law Reports 3,000 00 " Le Naturaliste Canadien " 400 00 Transcribing Archives 5,000 00 Preservation of Notarial Deeds and Public Documents at Sorel 500 00 Institution for the production of Animal Vaccine at Mon- treal 300 00 $ 17,900 00 ARTS AND MANU?"ACTURES. Board of Arts and Manufac- tures $ 10,000 00 AGRICUIiTURE. Agricultural Societies ^ 50,000 00 Council of Agriculture 4,000 00 Agricultural Journals 6,000 00 Aid to " La G-azette des Cam- pagnes" 500 00 Agricultural Schools 2,400 00 11 Agricultural School at Va- reiines | 2,400 00 Veterinary Schools 2,800 00 Horticulture and Pomology 1,250 00 Butter and Cheese Factories 4,200 00 Beet Sugar Factories 10,500 00 Miscellaneous 2,500 00 $ 86,550 00 •' i:\IMiaRATION AND REPATRIATION. Salaries and Expenses $ 12,000 00 COLONIZATION. Colonization Roads $ 70,000 00 Colonization Societies 5,000 00 Bridge at Lacolle 2,000 00 Bridge at St. Nicholas 2,000 00 Bridge at Bryson 2,000 00 Bridge at Ste. Anne 1,200 00 $ 82,200 00 PUBLIC WORKS AND BUILDINGS. Rents, Repairs, «&c $ 58,315 00 Inspection 3,000 00 Spencer Wood, stables, &c 5,000 00 Vaults for Court Houses 5,000 00 Repairs to Jacques Cartier Nor- mal School 2,000 00 Repairs to Court Houses and Jails 23,175 00 Rents of Court Houses 1,407 00 Insurance on Court Houses...... 400 00 $ 98,297 00 12 CHARITABLE INSTITUTIONSi Lunatic Asylums $ 232,625 00 Sundry Institutions 52,280 00 Reformatory Schools 6,500 00 Industrial Schools 11,500 00 $ 302,905 00 MISCELLANEOUS EXPENDITURE. Miscellaneous generally $ 20,000 00 Minino- Engineer 2,500 00 Agent in France 2,500 00 Commissioner of the Municipal Loan Fund 3,500 00 Pensions 14,000 00 Protection of forests against fire 5,000 00 Exploration and inspection of Mines 3,000 00 Preservation and rewooding of forests 600 00 Contribution to the Grame Pro- tection Society for sowing wildrice 250 00 - $ 51,350 00 CHARGES ON REVENUE. Cadastral Service $ 36,000 00 Surveys 40,000 00 Gr e n e r a 1 Expenditure for Crovv^n Lands 77,450 00 Quebec Official Gazette 1 2,900 00 Revenue Police 3,000 00 Stamps, Licenses, &c 15,000 00 Municipalities Fund 3,000 00 $ 187,350 00 Total Ordinary Expenditure $2,951,127 31 '^ . 13 ' II.— EXTPilORDINARY EXrENDITURE. BUILDINGS. Parliameut Buildings $150,000 00 Court House at Quebec 150,000 00 $ 300,000 00 RAILWAYS. Guaranteed Inte- rest for the Que- bec Central $115,240 32 Railway construc- tion claims 45,000 00 Purchase of lands.. 199,625 59 Works at Quebec. 220,000 00 Subsidies 250,000 00 $829,865 91 Total Extraordinary Expenditure $1,129,865 91 Grand Total $4,080,993 22 The building of the Quebec Court House will be provided for by the special loan authorized last year, and the works in connection with the North Shore Railway at Quebec will be paid wiih the debentures which the corporation of the City of Quebec has undertaken to deliver to the Govern- ment in settlement of its subscription. The other items of the extraordinary expenditure will be paid with a portion of the moneys arising from the loan authorized last year. The estimated ordinary expenditure according to the fi- gures I have just given amounts to the sum of $2,951,127.31, 14 • I will now show the House what are the estimated re- ceipts by means of which I expect to meet it. I estimate the receipts of the coming iiscal year as fol- lows : — I.— ORDINARY RECEIPT^?!. SUBSIDIES AND TRUSTS, Subsidy % 889,252 80 Specific gcrant 70,000 00 Interest on Common School Fund 34,843 61 Interest on Superior Education Fund 20,615 71 $1,014,712 12 COMMON SCHOOL LANDS. Interest payable by Ontario $ 25,000 00 CEOWN DOMAIN. Sale of Lands, Timber Licenses, &;c $ 750,000 00 LICENSES. Taverns, Shops, &c $ 260,000 00 JUSTICE. Law Stamps $ 170,000 00 Registration stamps 18,000 00 Fees 10,000 00 Building and Jury Fund 16,000 00 Contribution for maintenance of Prisoners 8,000 00 Montreal Reformatory School 5,000 00 Gaol Guards 2,400 00 Fines 1,000 00 Montreal Court House 9,000 00 $ 239,400 00 16 PUBLIC OFiriCERS. Percentage on their fees $ o,000 00 Percentage on renewals 1 ,000 00 $ (;,()00 00 LEGISIATION. Fees on Private Bills, &c $ 5,000 00 OFFICIAL GAZETTE. J^dvertisements, notices, &c i20,000 00 LUNATIC ASYLUMS. Contribution iroin Municipali- ties. $ 15,000 00 Payments by Patients 1,000 00 $ lf),000 00 PUlllilO BUILDINGS. Rents, &c $ 1,000 00 CASUAL REVENUE. Commissions, copies, &c $ 2,000 00 CONTRIBUTIONS FOR TENSIONS. Contributions of the Civil Service employees. .$ 5.500 00 INTEREST. Judicial and other Deposits I 15,000 00 r DIRECT TAXES. Commercial Corporations $ 125,000 00 16 QUEBEC, MONTREAL, OTTAWA AND OCCIDENTAL RAILWAY. North Shore Railway Company .$ 175,000 00 Canadiau Tacific Railway | 180,000 00 Interest upon the investmout of , the $500,000 paid by the North Shore Railway Company $ 25,000 00 $ 880,000 00 fV Total ordinary receipts |2,864,612 12 XL— EXTRAORDINARY RECEIPTS. QUE73EC FIRE LOAN. Payments $ 1,000 00 REFUNDS. Beauport Asylum $ 8,000 00 St. Jean de Dieu Asylum .6,000 00 $ 14,000 00 MUNICIPAL LOAN FUND. Collections $ 75,000 00 Total extraordinary receipts 90,000 00 Grand total of the estimated receipts $2,954,612 12 The information I have gathered has confirmed the esti- mate I had made of the sum to be realized by the direct taxes upon commercial corporations ; I place the receij^ts from this source, in the revision I have made of the esti- mates, at 1125,000 instead of $123,800. I The collection of these taxes has been vigorously con- tested, and the companies] that have been taxed have com- bined to resist it. The banks and insurance companies jisked me to cr isent to submit th(^ legality of the tax on a sint^le test case, oli'criniii; ut the ssamc time to deposit the amount of the tax in a l)ank to be chosen by them. 1 thought that it was not fitting for the Treasur(»r of the Pro- vince, who is responsible to tlie House for his acts, to enter into any agreement by which he would seem to throw a dimbt upon the po^ vers of the Legislature. I therefore j)ro- posed that these corpoiations should })lv the taxes under protest, with tJie exceptio.i of one in ea< h class. Against these, actions could have been taken in tln^ ordinary course and without a written agreement, the decisions in which would necessarily regulate the pretentions f)l' the corpora- tions who had paid under protest. The cori)oratious in question refused to pay — even under protest — into the hands of the Government, giving as a reason that they feared tliat they would not be reimbursed, and that they hiid no confidence in our governmental institutions. I felt this slur upon the good faith and honor of the Legislature, and 1 declined to continue the negotiations, to which I had at lirst consented with the view of saving them from the unplea- santness of judicial proceedings. The requirements of the service for the year necessitated the immediate collection of tliese taxes, and that steps be taken for that purpose. As it would not have been jiroper to make selections in institut- ing these proceedings, I consequently gave instrm;tions to sue without distinction all who, after notice, persisted in tlieir refusal to pay. The iirst case was heard in the be- ginning of this month, and the judgment will must prob- ably be rendered in the course of the month of March. Of these taxes there has been collected before the 1st January last, the sum of $11,845.78, and since that date $4,185, in all $16,030.73. 2 18 I hiivf no (lf 13,484.81. The situation is bevominj; critical. o In this state of things th(» slightest, decrease in the reve- nue, arising from unforeseen causes or th(» slightest increase in the expenditure would cause a di^iicii. The bill which the House passed the other day defining the position and increasing the i)owers of th(^ Provincial Auditor secures us against any increase, other than that which might result from an urgent contingency unforeseen by the Legislature. But exen a small expense of this kind would destroy the equilibrium. The amount of the railway subsidies payable to the rail- ways, which will be earned, will also increase by deo-rees and in the near future, the annual interest upon the public debt. The gradual increase in the expenditure for the 19 administration of jubtite and lor the support of lunatic asylums will evory year bocom** an additional burthen upon tho revenue. Under those circunislanceN it ihcn'iort' becomes necessary to increase the revejiue ol'the l^rovincc, and as soon as pos- sible to take the necessiiry steps for that purj)<)sc. I iliiidv the Pronnces can in all justice and accordinjy to the spirit of the covenant upon which the Confederation is based, ask that their annual subsidy be incri'asfnl. Before Confederation the Provinces had the riiij-ht to levy the moneys ri^quired for the public siTvice by imposinir cus- toms and excise (luti(\s, and i)y all other modes or systems, of taxation. By the resolutions ado]>l<'d })y the del(>inted to consider the scheme for unitini^ the Provinces under one Crovernment and upon which the Union Act is founded, the power to levy Customs and Excise duties was taken from the local and conferred upon the gt'neral government. This mode of levy in*^ was almost exclusively used for i)ro- vidinii' for administrative re p'ncrul government il became evident that some portion of the resoureew so placec at its disposal hud lo be apj^lied in some fc>rm or other, to Hwpply the hiatua that v/culd otherwiHe inevitably take place between the sources of loe the inii)ortance— I may say the necessity— of exer- cising a viligant and proper control ov«'r the exjx'nditure ;" Now, as a matter of fact, amongst the exp(»nses specially imposed ujion the Local (lovernments there are wmic which, as I hav»' already stated, are not suscei)tible of con- trol, and which necessarily increase in th(» same ratio as the ])o]mlation, such as the cost of the administration of justice and of th(.' maintenance of lunatic asylums. The administration of Justice aiul the maintenance of lunatic asylums in the Province of Quebec, for the years 1808, 1871 and 1881, cost the following sums :— Justice. Asylums. Totals. ' 1868 $822,230.24 $97,946.53 $420,182,77 ^871 349,024.89 132,223.09 481,247.98 1881 437,490.50 213,828.20 651,318.76 • 2t I. .„.., ir tlu' sul)si(ly wt'lH' tiilciihilcd upon llic \n\s'is ol" t'ucli Census, th«' Kubsidy to tlic Proviinv ol" (^iu'Im-*', ior the thnr d^'Cjidcs ol' IH()1. 1S71 jmd IHSI, \vo\diM)27 l,O87.-221.(;0 This would havo ••iviMi us an iucivasi^ for the dreado ol' 1S7I or$»;:}.!M;o and I'or that ol' 1881 of $1I»7,06H.8(). A roniparisou ol' such decennial increase of the i^ubsidy with till' increase in the expenditure for the administration of justice and the support of asylums, s)\ow's how this expenditure has followed tlu^ movement of the population. Here are the lioiin-s : — Increase in Increase in Yoars, Subsidy. Expenditure. IS71 $ iWM),0() 8 01,060.21 1881. 1!)7,UGS.()0 2:]l,i:3").01) Th(! sul)sidy was specially given to meet, amongst other expenditures, those for the administration of justice and the support of lunatic asylums, and the ligures I have just given establish that in calculating the subsidy upon the basis of the census i'or 18(11, the end in vi(^w was not attained. In Hict the expenditure in question increases almost in proportion to the population ; and to meet it the subsidy should increase in the same proportion. While the Local Government cannot, by any supervision, control this expenditure, the Federal Government by its legisla- tion respecting crimes and criminals and the great public works it undertakes, contributes to increase it. 22 To carry out the iiittMition ofthe IVmnders of the Confede- ration, it would consequently ])e necessary that the annual subsidy, instead of being' limited according- to the census of 1861, should be calculated for each dccadi; upon the basis of the last census. If the subsidy were so calculated, thi^re would not be an increase, but a decrease in the share given to the pro- vinces of the revenues transferred to th(^ Federal Govern- n»«>nt. In 18(j.41« 14^ For all these reasons the Goveriiuieiit is of opinion that the Leu-islature oF Quebec .should iisk that the annual sub- sidy be cabnilated ibr each decade, according to the new census, and that it should uri of Lor m;) Knujht of th,'. moi^t ancient and most noble Order of the Thistle, Knujht Graiid Cross of thr most distimjuished Ordstined, with certain local revenues, to meet the expenses of the Local Governments, including esjiecially the administration of justice and the support of hospitals and charitable institutions, and that in transferring all the large sources of revenue to the General Government, it became evident that some portion of the resources so placed at its disposal had to b(; applied, in some form or other, to supjdy the hiatus that would otherwise take place between the sources of local revenue and the demands of local expendi- ture ; That although it is true that by the 64th resolution and by section 118 of the Union Act, it is declared that the Pro- vinces should claim nothing more thereafter from the Gen- eral Government ; yet, such declaration was made, first, because the subsidy was deemed sufficient to meet the ex- penditure, and, also, because it w^as hoped that this provi- sion would oblige the Local Governments to control their expenses, as shown by the following remarks of the then Minister of Finance : "It is hoped that being, in itself, fixed and permanent in its character, the Local Governments w^ill see the importance, — I may say the necessity, — of exercising a vigilant and proper control over the expenditure ; " That, as a matter of fact, amongst the expenses specially imposed upon the Local Governments, there are some which are not susceptible of control and which necessarily increase 2d in the same ratio as the popuhition, fcuch as the cost of the administration of justice and thi^ maint(mauco of lunatic asylums ; That the administration of justice and the maintenance 0-' lunatic asylums in the Province of Quebec, for the fiscal years 1808, 1871 and 1881 cost the foUowini,'- sums : — Yeiud. Justice. Asylinn3. Totals. 1808 ifi!822,23G.24 $ !)7,94(>.53 $420,182.77 1871 840,024.80 132,228.00 481,247.08 1881 437,400.5!) 213,828.20 051,318.76 Griving an increase in expenditure in 1871 of $01,065.21, and in 1881 of !^231,13-).00. Th:it if tho subsidy were culculatod upon the basis of each census, tho subsidy to the Province of Quebec, for the three decades of 1801, 1871 and 1881, would be as follows : — Yeai-r^. . l'(![!iiliUioii. Subsidy. 1861 1,111,560 ^ 889,252.80 1871 1,191,514) 953,212.80 1881 1,350,027 1,087,221.60 Being an increase for the decade of 1871 of $03,900, and 1881 of $107,008.80; That a comparison of such decennial incn^ase of the sub- sidy with the increase in the expenditure for the main- tenance of justice and the support of asylums, shows how this expenditure has followed the movement of the popu- lalion : Years. Increase in .subrfidy. Increase in expenditure. 1871 1 63,960.00 $ 61,065.21 • 1881 107,968.80' 231,135.99 St That the subsidy was specially q-iven to meet, amongst other expeiidituics, those for tht; udiuinistratioii of justice and the support of lunatic asylums, and the above Hg-ures establish that, in calculating this subsidy ui)on the basis of the census for 18G1, the end in view was not attained, inasmuch as the expenditure in question increases almost in pro]>ortion to the i)opulation ; and to meet it the su])sidy sliould increase in the same ratio ; and while the Govern- nunit of this Province cannot, by any supervision, control this expi'nditur(\ the Federal Grovernment, by its legislation respecting crimes and criminals, and the great public works it undertakes, contiil)ules lo increase it ; That in order to eai-ry out the intention of the founders of the (^onfederat/ou. it would consequently be necessary that the annual subsidy, instead of being limited according to the census of 18(31, should be calculated for each de(-ade, upon the basis of the last census ; That if the subsidy were so calculated, there would not be an increase, but a decrease in the share given to the l^rovinces out of tln^ revenues transferred to the Federal (irovernment. That in 1808, the revenues arising from Customs and Excise duties amounted to $11,580,068.25, giving $3.75 per head of the population of the Dominion ; in 1871, these revenues amounted to $16,137,0 19.28, giving $4.63 per head ; and in 1881 they reached $23,749,114.22, giving $5.49 per per head ; therefore, if the Federal Grovernment paid to the provinces 80 cents por head, according to the census of 1881 it would only give 14J per cent of the receipts aris- • ing from these sources of revenue, whilst in 1868, it paid 21| per cent, as appears by the following figures : 2A cp 3 I' " Years. Population, gf o 1H6S. Roveimc. ^ K & Custom.s $ 8,578,340 09 '^ Exci.se 3,002,588 16 !8!ll,5SO,!)(J8 25 3,090,501 $3.75 21^ C'ustoius 111,841,104 5l> Excise 4,295,944 72 $10,137,049 28 3,485,701 |4.63 17* 1881. ^ Customs $18,400,092 13 Excise 5,343,022 09 $23,749,114 22 4,324,810 $5.49 14^ That consequently the Legislative Assembly of Quebec, begs to approach Your Excellency and prays that you will be pleased to submit to Her Majesty's Privy Council for Canada the following humble petition, to wit : That the Honorable Privy Council will be pleased to recommend that the provisions of the British North America Act 1.807 be amended, so that the annual subsidy paid to this Pro- vince by the Dominion Government be calculated for t. ih decade according to the new census. Quebec, 29th March, 1883. L. 0. TAILLON, Speaker. ■< \ ION FT DENT I At. iBmoraniluin Respecting the Claim of OueliBC. The estimated ordinary receipts of the Province of [Quebec amount to $2,864,612.00, and the receipts from the [Quebec Fire Loan, reimbursement of loans to the Beauport and Longue Pointe Asylums, and the Municipal Loan Fund, being extraordinary receipts, are estimated for next year at $90,000, making togvther $2,054,612. The ordinary expenditure, including the cost of criminal [justice, amounts to $2,951,127. This gives a small surplus of $3,485 for the ensuing fiscal year, but if the extraordinary receipts, amounting as above mentioned to $90,000, are not taken into account there is a deficit of $86,515. No economy can be etlected in the expenditure for the public debt. It would be impolitic to retrench on the expenditure for public instruction, arts and manufactures, agriculture and colonization. Some reduction in the ex- penditure can be effected for legislation, civil government, literary, scientific and benevolent institutions, and charges on revenue ; but, on the other hand, the expenditure for the administration of justice, reformatory institutions and lunatic as^dums will gradually increase from year to year. As the companies now constructing railways become entitled to their subsidies, new issues of debentures will have to be made, which will increase the charge for inte- rest. "Within the next five or six years the charge for inter- est will be thus increased by at least $75,000 a year. 30 It is truo that the receipts from municipal contributions towards the support of hmatics and prisoners will gra- dually increase ; but such increase in the revenue will not keep puce with the increase in the expenditure. The Treasurer expc^cts that the receipts, ordinary and extraordinary, will mon^ than balance the expenditure for the next fiscal year; but the ordinary revenue is actually insufiicient to meet the wants of the I'lovincial Govern- ment. It therefore becomes necessary to increase the revenue ol the Province. When the Confederation of the Provinces was established, the riirht to levy Customs and Excise Duties was trans- ferred to the Dominion Government, but at ihe same time a certain proportion of these duties were allowed to tho Provinces, to enable them to meet the expenses of local government, and particularly th(^ coiit of the administration of justice and the maintenance of asylums and hospitals This proportion was 80c. per head of the population, beinu' in 18G8 21 1 per cent of the receipts from those sources. In the Province of Quebec, justice and asylums cost in 18G8, 8420,182; in 1871, $481,247, and in 1881, iJGoL.SIH. being an incnase in 1871 of $61,00"), and in 1881 ol $231,136. In the Province of Ontario the expenditure for the admi- nistration of justice w^as -$182,621 in 1871, and $251,119 in 1881, and the expenditure for the maintenance of public institutions, including asylums for lunatics and for the deal and dumb and reformatory institutions, was $171,423 in 1871, and $551,663 in 1881. The fact is that th;^ expenditure under these two heads is uncojitrollable. and follows clor^olv the increase of the population. 81 The British North America Act declares that tht' subsidy of 80c. per head, payable to Ontario and Quebec, is to be culculated according to the census ot'lSGl ; but it stipulat<'s that the subsidy oT Nova Scotia and New Brunswick shall be calculated according to each sul)sequent decennial C(»nsus until the population of each of tliese two Provinces shall have attained 400,000 souls. The subsidy payable to Mani- toba, Prince Edward Island and British C^olumbin is also calculated on each subseqent decMinial census until their population respectively shall have attained 400,000 souls. As the expenditure of the Provinces of Quebec and Onta- rio for justice and asylums increases with the population, the subsidy of 80c. per head should be calculated as in the case of the other i)rovinces according to each subsequent decennial census. If this were done, the increasi^ in the case of the Pro- vince of Quebec would be ^6-5, OOO for the decade commencing in 1871, and $197,068 for that comm(>ncing in 1881. The increase in each case follows approximately the increased expenditure for justice and asylums. The percentage of the subsidy for all the provinces, if calculated on the basis of the last census, would be 14J per cent of the revenue derived from customs and excise, bein"* T per cent less than the percentage of 1808. The Province of Quebec has expended since Confedera- tion the sum of i^ 14,945,^71 .02 for railways. Its funded debt has been created solely to meet this expenditure ; and $1,725, 7ol. 45 of the loan recently authorized is to provide for the payment of subsidies to railways now in course of constructioii. The interest for the next fiscal year on the funded debt amounts to $820,312.50 from which, however, is to be deducted the sum of $880,000.00, representing the interest on the price of the sale of the government railway, leaving a })alance of .9440,81 2.50, When in a short time all the money subsidies have been earned, the annual charge on th(? I'rovincial Budget for intere.st on the funded debt will amount to over ^.>00,000. It will be observed from tlie ibregoing statement, that the financial dilficulties of Quebec result largely from th(» determination of that Province to aid in the development of enterprises, not only of a local character but of others ot a natnri^ calculated to inc^reasL' the importance and utility of some of our naticmal undertaking.^. Another large source; of annual expenditure arisi's from the administration of criminal justice. The legislation regarding this subject is determined by the Parliament of Canada, and it does set'm but fair and right, that some measure of relief should be afforded the Province in the payment of these expenses. In the budget of the fiscal year commencing the iirfit of July next, the following sums are included lor services connected with the administration of criminal justice, viz : — 1st. Salaries and ofiices of the Judges of the Sesssions of the peace and Police Magis- trates at Quebec and Montreal ^ 1G,200 2nd. Reformatory Prisons at Montrcnil and Sher1)rooke 47,500 8rd. Reformatory and Industrial Schools 18,000 4th. Crown Prosecutors 10,000 5th. Payments through Sherifis for costs of Criminal Justice 175,000 (5th. Coroners ' 9,100 7th. District Magistrates 12,600 $288,400 88 jWhilo iuknovvlt'dsiny' thftt the i?rt»at ^»xpenditur<» made the Dominioji lor railways hasiontrilmtcd larj^cly to t he advancement and prosperity of the whole rountry, ncver- th«'l«'N8 I feel constrained to assort that the Provinc«* of Qvichcc has derived less material advantaues from this ex- [lenditure than any of th(^ other provinees. I feel less hesitation and more assuranee in urging upon your attention the claims of the Province of Quebec from the fact that our Province has from the early days of Confe- deration, and invariably when tht; occasion requir<«d it, su])ported Ihe Federal authoriti«»s in whatever concession it was deemed desirable to make to satisfy the oth»'r Provinces of the Coniedcration, and thus, while maintaiuiny- the local institutions of each I'rovince, to ensure for all time to come on a sure and certain basis the preservation of the l^^ederal principle. The people of (Quebec, by their representatives in Parlia- ment, cordially and heartily gave their assent and united support to the ])r()positions which were made to enable several of the Provinces to maintain their respective local governments ; and in this the press of Queh«»c, reflecting public opinion there, endorsed the action so taken. The time has now arrived in Quebc^c's history when an appeal for aid, in such form as the Federal lllxecutive may in its wisdom determine, has to be made ; and I doubt not that the representatives of the other Provinces in the Federal Council will lend a willing ear to the appeal now being made on behalf of the Province of Quebec for the maintenance of her local institutions. J. A. MOUSSEAU. luebec, 24th April, 1888. • *•••« " >,... ■/ * t t k • • • • '* J ' • k. • •